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The implementation of minimum wages in Malaysia

Tin, Pei Ling and Yusof, Muhammad Fathi and Nik Mahmood, Nik Hasnaa and Tan, Hup Soon (2014) The implementation of minimum wages in Malaysia. Sains Humanika, 2 (2). pp. 43-46. ISSN 2289-6996

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Official URL: https://sainshumanika.utm.my/index.php/sainshumani...


Minimum wage legislation is gazetted by government in order to protect low skilled employees in order to increase their quality of life and reduce poverty. In addition, it is also aimed at encouraging companies to increase the value chain by investing in new technologies that require less unskilled workers. The aim of the policy is undeniable noble but the impact of its implementation is still debateable. Some may question the adequacy of the minimum wage rate or may argue that the policy will induce the influx of illegal workers. Despite that, organizations have different approach in implementing the policy in order to achieve the best solutions. The new policy gives more financial burden on small and medium organizations as compared to large companies. Thus, small and medium enterprises (SMEs) were allowed to defer payment of minimum wage to foreign workers until December 2013. The objective of this study is to describe the implementation of minimum wage policy in Malaysia and compare the implementation of minimum wage legislation between China, South Africa and Brazil. This paper applies a comparative study by using round desk discussion and case-studies methods.

Item Type:Article
Uncontrolled Keywords:Small and Medium Enterprise (SME), foreign workers, full time and part time employment
Subjects:H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce
Divisions:Razak School of Engineering and Advanced Technology
ID Code:59984
Deposited By: Haliza Zainal
Deposited On:23 Jan 2017 00:24
Last Modified:24 Apr 2022 06:46

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