Wednesday, November 9, 2011

Selangor implements RM1,500 minimum wage for GLC staff

The Selangor government announced the implementation of RM1,500 minimum wage for the employees of all wholly state-owned subsidiaries.

To start it off, Mentri Besar Tan Sri Abdul Khalid Ibrahim said, the state has allocated a RM10 million grant for companies whose financial standings are still unstable, in order to assist in the implementation of the minimum wage scheme.

The implementation of the minimum wage is part of the Selangor 2012 Budget themed "Selangorku: State's Revenue for the People" which was tabled at the state secretariat today.

At a press conference later, Abdul Khalid elaborated that implementation of a minimum wage will be supported by a higher workers' productivity level.

"We don't want to give give-aways. People need to earn their keep," he said.

On the RM10 million grant, Abdul Khalid said it can be used by the state government to pay salaries to workers earning below the minimum wage, while they undergo training.

"Once they have been trained, the companies can continue to employ the workers at a higher position and salary," he said.

To date, Barisan Nasional led federal government has only approved the setting up of a National Wages Consultative Council and announced its 25-members.

The National Wages Consultative Council Act 2011, which aims to set up a council to recommend the minimum wage for various sectors, regions and jobs, was passed during the last parliamentary session in June this year.

It was reported that the policy is expected to come into effect at the end of this year, despite concerns raised by workers groups, including the Malaysian Trade Union Congress and Malaysia Employers Federation.

Abdul Khalid, in announcing the state budget, said there is an allocation of RM1.6 billion – an increase of 11.89% from last year's RM1.43 billion.

Abdul Khalid said from the figure, RM1 billion was allocated for management expenditures, while the remaining RM0.6 billion will be allocated for development expenditures.

A bulk of the development expenditure has been set aside for building infrastructures.

Abdul Khalid said the total amounted to 68% or RM411,091,860 from the RM600 million allocations.

"The remaining allocations will be distributed for social developments (RM100,060,130), economic developments (RM84,240,010) and urban development (RM4,608,000)," said Abdul Khalid while tabling the budget proposal during the state assembly's sitting.

He said allocations under the budget was distributed based on four main policies:

>> Increasing administrative efficiency;

>> Increasing basic quality of living for families and communities;

>> Promoting development;

>> and promoting a well-rounded community

In terms of state revenue, Abdul Khalid said the state has recorded an 8.23% increase in tax revenues and 40.12% increase in non-tax revenues for next year.

"Tax revenue is expected to increase from RM530,980,000 this year to RM574,674,000 next year while non-tax revenues is expected to hit RM654,603,740," he said.
Abdul Khalid however added, non-revenue receipts (terimaan) is expected to decrease by 14.16% from RM431,855,640 to RM370,722,260.

He said the state's 2012 budget will also continue with phase three of its "Merakyatkan Ekonomi Selangor" (people oriented) programmes, including introducing a new allowance for parents to send their children to nurseries with an allocation of RM3 million.

The state's free water policy funded by Menteri Besar Incorporated (MBI) which has benefited over 4 million users will also be continued.

On top of the RM600 million development expenditure, Abdul Khalid said the state government has also allocated an additional RM300 million through a "Selangorku Grant" to execute 17 programmes, including one which is geared towards democratic empowerment.

He said the funds were taken from dividends made by MBI and its subsidiaries, partly attributed to effective administration and its success in combating corruption while doing business.

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