"According to an imitative financial statement calculated by the Malacca Chinese Chamber of Commerce and Industry, if a small and medium-sized enterprise (SME) has 100 local employees and 100 foreign workers, under the minimum wage policy, the company has to pay an additional RM753,130 to foreign workers and RM483,990 to local employers. In other words, a foreign worker earns RM1,853 per month, including basic salary and overtime allowances, which is higher than the RM1,515 monthly salary of local employee. In view of this, the minimum wage policy is going to benefit foreign workers instead of local employees, while increasing the expenses of employers. It seems like the policy is good for nothing." - Malaysian Insider, 31/1/2013, Are foreign workers the beneficiaries of minimum wage policy? — Lim Sue Goan
"I think it does make sense that a SMI which employs 100 foreign worker have to fork out additional RM700,000 - RM 850,000.00. Previously the rate was RM22.00 per day (8am - 5pm) and subsequently increase a bit since few years back. For the foreign worker,
1. old wages (maximum) are :- (((RM22/8)*12.5 hour per day) * 34 days <26 4="" basic="" days="" double="" pay="" plus="">)- RM1168 per month.
2. New wages (maximum) are :-
(((RM4.33*12.5 hour per day <11 exclude="" hours="" lunch="">)*34) = RM1840.25
3. Therefore the difference are :
RM 1840.25 - RM 1168 = RM672.25 per worker
4. Therefore 100 workers =
RM672,25.00 additional wages per Month.
5. Therefore RM806,700.00 additional wages per year..."11>26>
Someone explained about having to pay more for migrant workers, compared to local workers...
But in 1989[i], the government amended the law allowing for the Minister to waive these rights as to required hours of work, on the application of the employer, but retained the condition that no worker is required to work for more than forty-eight hours in one week, which subsequently was removed by yet another amendment in 1998[ii].