Daily HR Update 21.10.2024

 1.          HR Minister Steven Sim cautioned employers against using the new RM1,700 minimum wage as the starting salary for all employees, particularly graduates. He emphasized that the increase is aimed at workers with lower qualifications, especially in the 3D (dirty, dangerous and difficult) sectors. Minister urged employers to offer salaries based on employees' skills and qualifications to attract and retain talent, ensuring fair compensation.

Source:https://www.freemalaysiatoday.com/category/nation/2024/10/21/minimum-wage-not-a-starting-salary-for-all-workers-sim-warns-employers/

2.          Home Minister Datuk Seri Saifuddin Nasution Ismail announced that Malaysia might reconsider reopening migrant labor hiring as the foreign worker count nears the 15% ceiling set under the 12th Malaysia Plan. As of September 15, officials are reviewing the situation, but the suspension on new applications will continue for now. There are no plans to reintroduce the Labour Recalibration Programme.

Source:https://www.dailyexpress.com.my/news/244283/home-ministry-mulls-review-of-migrant-labour-quota-as-foreign-workers-near-15pc-limit/

3.          The EPF’s new policy will require non-Malaysian workers to contribute to the fund, ensuring social protection for all workers, regardless of nationality, in line with international standards. Expected to benefit over two million foreign workers, this initiative promotes labor market fairness. Further details will be announced, with phased implementation starting in 2025.

Source:https://www.dailyexpress.com.my/news/244321/nearly-300-000-malaysians-lost-jobs-since-2020-manufacturing-sector-worst-hit/

4.          The Federation of Malaysian Manufacturers (FMM) expressed disappointment over the government's decision to mandate EPF contributions for foreign workers from 2025 without prior consultation. FMM President Soh Thian Lai criticized the lack of clarity, citing concerns over increased costs, operational impacts, and insufficient time to adjust. Soh called for a two-year delay and highlighted the financial burden on employers, especially with the upcoming RM1,700 minimum wage.

Source:https://www.freemalaysiatoday.com/category/nation/2024/10/21/fmm-shocked-by-govts-move-to-deduct-epf-for-migrant-workers/