The part of the economy that is not state controlled, and is run by individuals and companies for profit. The private sector encompasses all for profit businesses that are not owned or operated by the government. Companies and corporations that are government run are part of what is known as the public sector, while charities and other nonprofit organizations are part of the voluntary sector.
DEFINITION OF MINIMUM WAGES
The minimum amount of compensation an employee must receive for performing labor. Minimum wages are typically established by contract or legislation by the government. As such, it is illegal to pay an employee less than the minimum wage.
IMPACT :
- With a better pay scale, worker's purchasing power will improve which will also be a boost for our economy. This move will benefit all parties - the government, employees and employers.
- Help lower rank employees to have at least a minimum saving in their Employee's Provident Fund and minimum protection from the Social Security Organisation (SOCSO).
- On the employers side, the Malaysian Employers Federation (MEF) is hopeful that the minimum wage scale announced will increase the employees’ productivity. Its President Shamsudin Bardan said a better pay scale is hoped to boost the employees’ motivation to work harder.
- MEF beliefs that the employees should work towards improving their skills for it would be more desirable for employers if skills certification becomes the basis to determine the pay scale.
- It will give them higher standard of living.
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