Kula: We’ll be keeping the EIS

Ministry to also review minimum wage

KUALA LUMPUR: The new Government is keeping the Employment Insurance Scheme (EIS) and is already having meetings to review the minimum wage.

“Yes, it will be continued,” said Human Resources Minister M. Kulasegaran in reply to a question if the scheme would be kept.

He was talking to reporters after a visit to the Industrial Court in Wisma Perkeso here yesterday.

The scheme, which was met with resistance by employers’ groups when it was first introduced by the previous administration, has so far seen 7,112 applications, of which 5,867 have been approved by Socso.

It took effect this year, requiring employers and employees to contribute 0.2% each into an insurance scheme for laid-off staff to claim a portion of the insured salary for between three and six months.

The ministry, said Kulasegaran, was already having meetings to review the minimum wage, which Pakatan Harapan had pledged in its manifesto to gradually increase to RM1,500 a month.

However, he said concrete plans might take some time as the country’s debts and finances has to be managed and looked into first.

Kulasegaran also said while it allowed foreign workers out of necessity, the priority will be given to local workers.

“Think about our Malaysians first, others come second,” he said.

Kulasegaran was replying to a question about a 2016 agreement between the previous administration and the Bangladeshi government to bring in some 1.5 million workers Kulasegaran: Plans are being worked out to reduce dependency on foreign workers.

into Malaysia over three years.

He also said the ministry was looking into ways to expedite procedures for resolving unfair dismissal cases in the Industrial Court.

He said as at April 30, the number of pending cases waiting to be referred to the Industrial Court stood at 1,970.

Ministry officers have been instructed to process these cases within three months, said Kulasegaran.

“I have told (the officers) that they may have to come back at night, Saturdays, Sundays and public holidays to finish processing these cases,” he said, adding that the reason behind the backlog was administrative in nature.

“It is not fair for workers to wait that long,” he said.

He said he was also agreeable to amending the law so that these cases would no longer require the minister’s discretion to be referred to the Industrial Court.