Update contracts automatically if new minimum wage introduced, says security industry association

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KUALA LUMPUR: The Security Industry Association of Malaysia (PIKM) has called on the government to update all contracts with security companies automatically if a new minimum wage rate is introduced.

Its president Datuk Seri Ramli Yusuff said that the association is aware that the government will be finishing its study on an increase to minimum wage at the end of the year.

Instead, security companies would be instructed to increase the salaries of personnel when a new minimum wage was gazetted, Ramli said. "It also involves other increases amounting to RM400, which covers overtime, Employee Provident Fund and Social Security Organisation contributions, insurance and other costs," he said.

"PIKM records showed that there are still backlog payments for updated contracts for minimum wage in 2018 and 2020. "It includes the readiness of the government to make payment based on the rate of the updated contracts in the first month of when the minimum wage is gazetted.

 

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