NATIONAL WAGES CONSULTATIVE COUNCIL ACT 2011(MALAYSIA)

INTRODUCTION-

Whereas the national wages consultative council (''the council'') established under section 3 of the national wages consulative council act 2011 (Act 732) in exercising the power provided under section 4 (2) of Act 732, hereby decides other than matters provided for in the minimum wages order 2012 .

PURPOSE-

The National wages consultative council act 2011(Malaysia) which comes into effect on 1 january 2012, will allow the government to set minimum wages for different sectors ,employment types and regions after receiving recommendationsfrom the National wages consultative council .

Employers may be subject to fines of up to RM10000 for each employee that it fails to pay at least the minimum wages . Repeat offenders may also face upto five years imprisonment .

DEFINITION-

The National Wages Consultative Council Act 2011 is a new act to establish national wages consultative council with the responsibility to conduct studies on all matters concerning minimum wages . This act came into operation on 23rd september 2011.

THE PARTS WITH TABLE

The method of implementation of the order is as follows:

1. MINIMUM WAGES FOR DAILY RATED EMPLOYEE

In line with the objective of implementation of the minimum wages order 2012, a full time employee shall be paid an averager minimum wages of not less than RM900 or RM800 ( sabah, sarawak, and federal territory of labuan) a month. a full time employee is paid on a daily basis was present to work on normal working days as determining and who completes the agreed normal hours of work as per the contact of service without regard to the total hours work in a day shall be paid a daily minimum wages based on the following formula :

Daily wages Rate =Rate monthly minimum wages x 12 months/52 weeks x no of working days in a week

i)The daily minimum wages rates for Malaysia are as follows :

No. of working days in a week	Daily wages rates	Average monthly wages
6	RM34.62	RM34.62*26 Days =RM900.12=RM900
5	RM41.54	RM41.54*21.67 Days =RM900.17 = RM900
4	RM51.92	RM51.92*17.33 Days =RM899.77=RM900

Note: The above calculation on total working hours of a maximum of 48 hours a week.

2. Minimum wages for employees who are paid wages by piece-rated , tonnage, trip of commission .

i) If the wages paid is above the minimum wages , the minimum wages of RM900 in malaysia.

3. Method of restructuring of wages

i) The restructuring process is made only once before the commencement date of his order and not a continous process after the commencement date of order.

ii) Allowances paid specifically due to the nature of work .