Minimum wage employment Review Example

Minimum wage rate is one of the efforts of the government to ensure and enhance the welfare of employees in the workplace. Minimum wage is the minimum amount of compensation of an employee must receive for performing labor. It’s established by contract or legislation by the government. It’s illegal for an employee to received payment lesser than the minimum wages. Minimum wages is used to protect employees from exploit that allowed them to afford the basic neccessities of life. It’s rate fluctuates between countries and also between states or provinces.

Strong criticism from many economits has drawn minimum wages. Since it establishes a price floor on wages. Price floors can lead to a dead weight loss in the economy, which means that inefficiencies exist. Because of minimum wages, company need to hire fewer employees, thus it increasing the unemployment. Malaysia Employment Act and National Minimum Wages Consultative Act 2012 are the acts for the minimum wage rate in Maaysia. Malaysia Employment Act started its operations on 1st April 2012 where the National Minimum Wages Consultative Act 2011 started the operation on 23th September 2011.

National Minimum Wages Consultative Act 2011 which belongs to the ministry of Human Resources mentioned about the basic wages for employees under section 23 of the act for those employee who are located in the peninsular of Malaysia with a minimum wage of RM900 a month and for East of Malaysia its RM800 a month. The advantages of having National Minimum Wages Consultative Act 2011 are, it’s improving the living standard of the low-income household and it also created more job opportunities for the locals. The disadvantage due to this act cause more unemployed individual.

It is creating job losses in the lower job categories where job’s demand is still vulnerable for those people wokring in the rural areas. The advantages of Malaysian Employment act are thatthey given more priority and protection for females employees that are facing problems in office , example is sexual harrasment which are apllied to all females working regardless wheter they are non executive or executive. There’s also entitled for maternity without taking into consideration of their monthly salary for those who are pregnant. Public holidays such as Malaysian day, Labour Day and Independent Day, those

employees who are under the Employement Act are also able to take an extra day of paid leave on public holidays. To compare Malaysia minimum wages with other countries, New Zealand current minimum wage law is described in the minimum wage act 1983. The minimum wage amendment acts 2007 provided that the rates for 16-17 year olds and those in training cannot be lower than 80% of the adult rate. For an employee that is under 16 years old, there is no minimum wage. $10. 80 per hour is the minimum wage for employees that is between 16 and 17 years old or for employees that is in training.

The training wage applies to people doing recognised industry training involving at least 60 credits a year. For employees 18 and older, the minimum wage is $13. 50 per hour before tax. New Zealand is also the first country to implement a national minimum wage. While in Japan , minimum wage depends on the industry and the region. Industrial minimum wages apply for certain industries and usually set higher than the regional minimum. If regional and industrial minimum wages differ, higher of two will apply. As of 2011, regional minimum wages range from ? 645 (~US$8.

40, €6. 10) to ? 837 (~US$10. 90, €7. 95) per hour for all workers, in fiscal 2011 the average minimum wage was raised by 6 yen. On July 25,2012 a subcommittee of the Ministry of Health, Labor and Welfare’s central minimum wages council decided to recommend that it will be raised by 7 syen. This would raise the average minimum wage from ? 737 to ? 744.

The cost of commuting, extra pay such as working on holidays, working at night and taking overtime or temporary pays such as bonus, tips must be paid exclusively and connot be used to calculate towards the minimum wage.The Minister of Labour or the chief of the prefectural labour standars office sets the regional minimum hourly wages. The minimum wage council makes the recommendations.

While the Australian National Minimum Wage is the minimum base rate of pay for ordinary hours workied to any employee who is not covered by a Modern Award or an Agreement. In 1896 in Victoria, Australia. An amendement to the factories act provided for the creation of a wages board. The wages board did not set a universal minimum wage, rather it set basic wages for 7 industries that were considered to pay low wages.

It first enacted as a four-year experiment, the wages board was renewed in 1900 and made parmanent in 1904. That time it covered 150 different industries and in 1902, other Australian state suc as New Sounth Wales and Western Australia had also formed wages boards. Australian federal minimum wage was 58% of the media wage compared to 45% in the Uk and 34% in the US. The Australian Fair Pay Commision was established under the Workplace Relations Amendment Act 2005. It is Responsibility of the commision to adjust the standard federal minimum wages.

Prime Minister Datuk Seri Najib Tun Razak announced the minimum wage for private sector on the eve of Labour Day as one of the initiatives to lead the nation to a high-income society. While the economists are still debating on the pros and cons for such move; the HR practitioners should start planning to help your company to maneuver through this change. First and foremost, you need to know what are going to change and what’s not under the new rule. In case you missed the news a few days back, here’s a summary of the proposed minimum wages.

However, the one-year grace period is not applicable for professional companies such as law firms, dental or medical clinic even though they have 5 employees or less, Allowances or fixed cash can be considered in the calculation of new wages. The new wage structure will NOT include those in domestic service such as maids and gardeners, a review of the floor wage to be carried out every two years In conclusion, I have concluded that the minimum wage rates in Malaysia are very much lower compared to the minimum wage rates in the United States.

For an example: The employees in peninsular Malaysia are earning a minimum wage rates of RM800 per month whereas employees in California are earning a minimum wage of $8. 00 per hour which means they are earning around $1,920 per month. The minimum wages is not only affecting your present stage, but future as well. Government has made it clear that they will review the floor wages every two years. Could the new employee that you just hired yesterday competent enough to justify for another round of revision in minimum wages Work closely with other department to understand how the new rule will affect them.

This is not limited to those impacted by the minimum wages directly, but it could be those at the middle management as well especially when the production activity or procedure will be changed with the new rule. Reference: 1. Conclusion Minimum wage rate in Malaysia Author: none Year Publish: none Source: http://www. mfcci. com/single-news/n/announcement-of-national-minimum-wage-rates-for-the-private-sector/. html 2. The definition of Minimum Wage Author: Business Dictionary Year Publish: None Source: http://www. businessdictionary. com/definition/minimum-wage. html.