PETALING JAYA: Sime Darby Plantation Bhd (SDP) will be implementing a RM1,500 monthly minimum wage for all workers across its Malaysian operations with effect from May 1.

       In a statement yesterday, the plantation group said it is also implementing additional incentive programmes to encourage productivity among its workforce and attract more locals to join the industry.

       “SDP currently has more than 24,000 plantation workers in Malaysia. The roll-out of the new minimum wage will require the recalibration of hourly and daily rates and revision of previous benchmarks for wage calculations across the board.

       “This will benefit all workers and employees across the board. Coupled with the enhanced productivity incentives, the more attractive take-home pay will hopefully appeal to more locals in joining the workforce.”

       Effective March 1, SDP had streamlined the minimum wage rate for all its Malaysia-based workers to RM1,200 a month, regardless of their location.

       SDP group managing director Mohamad Helmy Othman Basha said the group’s last wage rate adjustment was in May 2020, following a government decision to raise the minimum wage for workers in municipal council areas to RM1,200 a month and RM1,100 for those in non-municipal council areas.

       He said more than 16,000 workers in areas within or adjacent to a city or municipal council benefited from that adjustment.

       “We decided to streamline the current minimum wage rates to RM1,200 a month across our Malaysian operations, as we work towards implementing the RM1,500 minimum wage rates.

       “We also decided to enhance productivity incentives to ensure that SDP’s workers are well compensated and rewarded for their productivity.”

       On top of the wages and productivity incentives, Mohamad Helmy said plantation workers at SDP also enjoy several other free and subsidised benefits provided by the company.

       “These include free housing for themselves and their dependants, subsidised utilities, free medical treatment for employees and their immediate dependants and various amenities such as school bus transport for employees’ children, child-care centres and recreational facilities.”