SDP to introduce new minimum wage across its Malaysia operations

by TMR / pic by AFP

SIME Darby Plantation Bhd (SDP) will implement the RM1,500 monthly minimum wage for all workers across its Malaysia operations on May 1, 2022.

In addition to that, SDP is also implementing additional incentive programmes to encourage productivity among its workforce and attract more locals to join the industry.

SDP currently has more than 24,000 plantation workers in Malaysia.

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The roll-out of the new minimum wage will require the recalibration of hourly or daily rates and revision of previous benchmarks for wage calculations across the board.

“This will benefit all workers and employees across the board. Coupled with the enhanced productivity incentives, the more attractive take home pay will hopefully appeal to more locals in joining the workforce,” SDP said in a statement yesterday.

At the recent 15th National Seminar 2022 organised by the Incorporated Society of Planters, Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin remarked that the plantation sector should not be facing any problem in implementing the new minimum wage.

She added that the average salary level in the palm oil industry can be up to RM2,000 to RM2,500 per month.

Read more: No problem for RM1,500 minimum wage in plantation sector

Effective March 1, 2022, SDP had streamlined the minimum wage rate for all its Malaysia based workers to RM1,200 a month regardless of their location.

SDP’s last wage rate adjustment was in May 2020, following a government decision to raise the minimum wage for workers in municipal council areas to RM1,200 a month and RM1,100 for those in non-municipal council areas.

More than 16,000 workers in areas within or adjacent to a city or municipal council benefitted from that adjustment.

“We decided to streamline the current minimum wage rates to RM1,200 a month across the Malaysia operations, as we work towards implementing the RM1,500 minimum wage rates,” SDP group MD Mohamad Helmy Othman Basha said.

On top of their wages and productivity incentives, plantation workers at SDP operations enjoy several other free and subsidised benefits provided by the company.

These include free housing for themselves and their dependents, subsidised utilities, free medical treatment for employees and their immediate dependants, and various amenities such as school bus transport for employees’ children, childcare centres and recreational facilities.

Read more: HR minister urges more companies to pay higher minimum wage