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Equal Remuneration Convention, 1951 (No. 100) - Malaysia (RATIFICATION: 1997)

Article 2 of the Convention. Gender wage gap. In its previous comments, the Committee noted that the gender wage gap was particularly high in certain industries and occupations and requested the Government to take concrete measures to improve the access of women to a wider range of job opportunities at all levels, including in better paid positions. The Committee notes from the Salaries and Wages Report Survey of 2015 (Department of Statistics) that while the labour force participation rate of women increased (from 49.5 per cent in 2012, to 54.1 per cent in 2015), it remained low compared to that of men (80.4 per cent in 2015). It further notes that while the overall gender wage gap (mean monthly salaries) decreased from 4.5 per cent in 2013, to 3.9 per cent in 2015, the gender wage gap remained significant in certain industries and occupations. When looking at mean monthly salaries and wages, by occupation, the gender wage gap continues to be lowest for technicians and associate professionals (6.7 per cent) and clerical support workers (11.9 per cent) while it is still significant for other occupations such as managers (25.9 per cent), professionals (24.1 per cent), craft and related trade workers (29.5 per cent), services and sales workers (31.8 per cent) and skilled agriculture, forestry and fishery workers, for whom it has increased (34.2 per cent against 26.8 per cent in 2013). The Committee notes that, at the industry level, there is a persistently high gender wage gap in agriculture, forestry and fishing (35.7 per cent), professional, scientific and technical activities (35.3 per cent), finance and insurance (32.3 per cent), accommodation, food and beverage service activities (28.3 per cent) and real estate activities (28.1 per cent). The Committee notes that one of the objectives of the Eleventh Malaysia Plan for 2016–20 is to increase the labour force participation rate of women up to 59 per cent by 2020. To this end the Government is implementing initiatives to promote women entrepreneurs, through access to credits and loans, and to help them better reconcile work and family responsibilities, through financial incentives for companies and promotion of flexible work arrangements. The Committee further notes that, according to the Plan for 2016–20, efforts will be intensified to increase the number of women in decision-making positions. In this connection, it notes the Government’s indication that the number of women in decision-making positions in the private sector remained very low as compared to the target of 30 per cent by 2016 (as only 15.4 per cent of women were holding top management positions in private companies in August 2015), but that the “30 per cent Club” was launched in May 2015, in order to strengthen affirmative action to achieve gender equality. The Committee requests the Government to provide specific information on the impact that the measures taken, in the framework of the Eleventh Malaysia Plan for 2016–20, to increase the labour force participation rate of women and their representation in decision-making positions in terms of reducing the gender wage gap in the various industries and occupations, particularly in those where it is high. It also requests the Government to provide information on any other measures taken or envisaged, in cooperation with workers’ and employers’ organizations, to this end. The Committee asks the Government to provide up-to-date statistical data, disaggregated by sex, on the distribution of workers in the various industries and occupations, specifying their corresponding remuneration levels, as such data constitutes an important tool to assess the progress made in the application of the Convention.

Minimum wages. In its previous comments, the Committee noted that while the Minimum Wages Order 2012, set the monthly minimum wage for all private sector workers, domestic workers were excluded from its scope. The Committee welcomes the increase of the minimum wages from 1 July 2016, as a result of the National Wages Consultative Council’s recommendations, as well as the ratification of the Minimum Wage Fixing Convention, 1970 (No. 131), by Malaysia on 7 June 2016. However, the Committee observes that domestic workers continue to be excluded from the scope of the Minimum Wages Order. Noting that according to the Labour Force Survey Report of 2015 (Department of Statistics) more than 95 per cent of domestic workers are women, the Committee again draws the Government’s attention to the possibility of indirect discrimination where female-dominated groups of workers are excluded from the application of minimum wage legislation, in particular those most vulnerable to wage discrimination such as domestic workers (see 2012 General Survey on the fundamental Conventions, paragraphs 684 and 707). Recalling, once again, that the principle of equal remuneration for work of equal value is to apply to domestic workers, whether nationals or non-nationals, the Committee requests the Government to provide specific information on the manner in which it is ensured that in determining wages, (including minimum wages) for domestic workers who are mostly women, their work is not being undervalued as compared to work done by predominately male groups.

Application of the principle in the public sector. The Committee previously noted the salary structure and job classifications in the public sector and requested the Government to indicate how it was ensured that the job classification system was free from gender bias. It also requested the Government to provide information on the measures taken to improve the access of women to higher ranking and better paid positions in the public sector. The Committee welcomes the increase of the rate of women in top management positions in the public sector from 30.5 per cent in 2010, to 37.1 per cent in 2015. The Committee, however, recalls that the fact that a system of remuneration is based on a classification of jobs that applies to all public sector employees, without distinction on the ground of gender, does not prevent indirect pay discrimination. Discrimination can be due to the manner in which the classification of jobs itself was established, with the tasks performed mainly by women often being undervalued in comparison to the tasks traditionally performed by men, or it can result from inequalities in the payment of certain wage supplements for work of equal value (allowances, benefits, etc.). The Committee notes the absence of information provided by the Government on the distribution of men and women in the different positions of the public sector, and their corresponding remuneration levels. In this regard, it draws the Government’s attention to the importance of conducting an evaluation of the overall gender pay gap in the public sector that may be due to occupational gender segregation of women into lower-paid positions. Recalling the Government’s obligation to ensure the full application of the principle of equal remuneration for men and women for work of equal value to its own employees, the Committee, once again, requests the Government to indicate how it is ensured that the criteria used to determine the classification of jobs and remuneration scales in the public sector are free from gender bias and that positions held predominantly by women are not undervalued in comparison with those undertaken by men. The Committee requests the Government to take the necessary steps to collect and analyse statistical information on the distribution of men and women in the various occupations and positions in the public sector and their corresponding remuneration levels, to determine whether wage gaps exist, and to take the necessary steps to eliminate any wage gaps. It also asks the Government to continue to provide information on the measures taken to improve the access of women to higher ranking and better paid positions in the public sector, and the results achieved.

Article 3. Objective job evaluation. The Committee notes that, according to the Eleventh Malaysia Plan for 2016–20, the Government will establish a National Wage Index (NWI) that will serve as a “benchmark for employers in determining the right wage level for employees, in accordance with their qualifications, skills and productivity”. The Committee draws the Government’s attention to the potential confusion between factors such as productivity, which aims at evaluating the performance of an individual worker in carrying out his or her job, and objective job evaluation, which is to measure the relative value of jobs with varying content on the basis of the work to be performed. Objective job evaluation is concerned with evaluating the job and not the individual worker (see 2012 General Survey, paragraphs 695–696). The Committees hopes that the NWI will be based on entirely objective and non-discriminatory criteria to avoid job evaluation being tainted by gender bias. It requests the Government to provide information, in collaboration with employers’ and workers’ organizations, on the adoption and implementation of the NWI. The Committee also requests the Government to provide a copy of the NWI, once adopted, indicating also whether it would apply to both the public and private sectors.

Article 4. Cooperation with the social partners. In its previous comments, the Committee noted that the National Labour Advisory Council (NLAC) makes decisions regarding issues pertaining to wages and other conditions of work. The Committee notes the absence of information provided by the Government on its cooperation with employers’ and workers’ organizations to promote the principle of the Convention. Recalling the important role of the social partners in implementing the principle of the Convention, the Committee requests the Government to take the necessary measures to effectively cooperate with employers’ and workers’ organizations, within the NLAC or otherwise, with a view to giving effect in practice to the principle of equal remuneration for men and women for work of equal value. It also requests the Government to provide specific information on any measures taken in this respect, as well as on the results achieved by such activities.

Enforcement. The Committee notes that the Government does not provide any information concerning the application of the Convention, in practice. Referring to its comments under the Labour Inspection Convention, 1947 (No. 81), the Committee notes that no annual report on the work of the labour inspection services has been received by the Office. It notes the Government’s indication that measures will be taken to increase the ability of public officials for a better understanding of the principle of the Convention and to raise awareness in this respect. The Committee requests the Government to provide information on the activities of the labour inspection services, as well as any other available information on the number, nature and outcome of cases regarding equal remuneration for men and women for work of equal value, in both the private and public sectors, dealt with by any competent authorities. It also requests the Government to provide specific information regarding awareness-raising activities conducted among workers, employers and their organizations, as well as labour inspectors, judges and other officials responsible for ensuring the implementation of the principle of the Convention, in practice.