Government is in discussion to encourage flexible working hours and progressive minimum wage


The government is looking for an effort to incentivise in their efforts to encourage flexible working hours and progressive minimum wage for employees.

Human Resource Minister Steven Sim said the government’s effort aligns with Employment Act 1975 specifically section 60p and 60q to provide a framework for employers and employees.

“What we want is good industrial relations where employers must understand the situation of workers and we see this FWA as one of the methods to enable workers to have a better work environment, especially about for example traffic hours or the need for career care tasks.

“The components can be applied for specific time, days and also the location of workers flexibly and with the procedure of getting feedback from the employers given within the period 60 days-and the employer has to give reasons for the rejection,” he said at the Malaysia (ACCCIM) Power Chat 3.0 event today.

Sim also encourages both employers and also employees to explore methods to improve the economic productivity and the relationship between jobs and enterprises in Malaysia.

“In this area of FWA, our agencies like Talent Corp and PERKESO offer services to companies to facilitate or implement flexible work arrangements,” he said.

Sim also mentioned that there are various approaches to managing account policy issues where at this stage, they aim to encourage companies through incentives and offer advisory services, similar to how tax incentives are implemented.

Furthermore, he also commented on the progressive wage bases announced this year where the government will implement a pilot project to improve wages and also debt compensation for workers.

“This minimum wage policy is among the instruments we view as important but cannot solve the wage problem comprehensively leaving a positive impact on the low income group,” he said.

Sim added for the middle income group the impact of the minimum wage is little but there are other instruments like the pilot project to encourage employers to give more progressive salaries to their employees.

“With employers doing this, (the) government will provide a matching subsidy or grant and they are still discussing with the economy ministry to issue a formula and salary framework and salary threshold value which is expected to start in the second half of this year, comprising of 1,000 companies,”he elaborated.