Malay group warns of retrenchments if employers’ EPF contribution raised
Norsyahrin Hamidon
KUALA LUMPUR — May 4, 2023: The Malay Chamber of Commerce Malaysia has warned that up to a million workers from smaller businesses may be unemployed if the government decides to increase the Employees Providence Fund contributions by employers.
The main reason cited is that this will simply increase a company’s operating costs.
The chamber’s acting president Norsyahrin Hamidon told Utusan Malaysia that most employers could not afford the extra costs as they are currently struggling to adapt and restructure after the Covid-19 pandemic.
Prime Minister Datuk Seri Anwar Ibrahim recently said the Cabinet will discuss a recommendation by Uni Malaysia Labour Centre to increase the contribution to 20 per cent from the current 13 per cent for those earning RM4,000 monthly and below.
Yesterday, the Small and Medium Enterprises Association of Malaysia asked the government to reject the recommendation because SMEs have had to endure two rounds of increment in minimum wages and forced to provide higher employees benefits since 2020 despite economic difficulties.
No comments:
Post a Comment