International Journal of Humanities and Social Science

ISSN 2220-8488 (Print), 2221-0989 (Online) 10.30845/ijhss

Implementation of Minimum Wage Policy in Malaysia: Manufacturing Employers’ Perceptions of Training Provision and Fringe Benefits
Vally Senasi, Samihah Khalil

Pay and fringe benefits are the highest form of reward for workers. The main aim of the minimum wage policy in Malaysia is to ensure the workers receive ‘fair’ wages and are not exploited. However, the negative impact of minimum wage on firm’s margin profitability has lead employers to make adjustments to the workers’ fringe benefits. Consequently, challenges faced by employers and their response to workers’ fringe benefits become an important research topic. Data were gathered from interviews with six employers in electrical and electronics firms. The main findings require employers to adopt logistical and wage scale adjustments. The results also show that minimum wages do not adversely impact the rate of workers’ allowances. However, there are changes to the percentage of insurance coverage. These findings provide an additional view on the issue of minimum wages and should facilitate in the drafting of better wage strategies in future.

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