MINIMUM WAGES
- The new minimum wage of RM1500 a month nationwide effective 1 May 2022 was officially gazetted on April 27.
Here is the summary of Minimum Wage Order 2022:
1. Implementation begins on 1/5/2022 for employers who
a) has 5 or more employees;
b) carries out professional activities under the MASCO class as officially published by the Ministry of Human Resources;
2. Implementation begins on 1/1/2023 for employers who
a) has less than 5 employees;
3. While during the transition period of 1/5/2022-31/12/2022, the employer in (2), shall pay the minimum wage as follows if,
a) Operate in City Council & Municipal Council areas – minimum wage RM1200 per month;
b) Operate outside the City Council & Municipal Council area – minimum wage of RM1100 per month.
4. With this implementation, the daily wage will also be increased as follows,
a) RM69.23 to RM86.54 (4 working days)
b) RM55.38 to RM69.23 (5 working days)
c) RM46.15 to RM57.69 (6 working days)
equivalent to an hourly rate of RM7.21
Minimum monthly wage of RM1,200 in 57 major towns starting 2020
PUTRAJAYA (Bernama), 2019: The government has decided to raise the minimum monthly wage to RM1,200 in major towns under 57 city and municipality councils while the minimum wage remains at RM1,100 a month for the rest of the country, says the Human Resources Ministry.
It said the new minimum wage will take effect from Jan 1, 2020, for all employers and the order would be gazetted soon in line with the decision.
Details on the minimum wage according to hours and days as well as workers paid according to piece rate, trip, commission, tonne and task would be provided under the new minimum wage.
According to a statement from the ministry, this follows the tabling of Budget 2020 and the decision of the Cabinet on Dec 6 on the implementation of the RM1,200 minimum wage per month in major towns.
“The implementation of RM1,200 minimum wage in major towns and RM1,100 per month in other areas, was defined under Section 2 of the Employment Act 1955 (Act 265), Sabah Labour Ordinance and Sarawak Labour Ordinance,” it said.
The ministry said the minimum wage would be applicable to all workers in the private sector except domestic service as stipulated in the Minimum Wages Order 2018.
It said the decision of the government to increase the minimum wage in major towns was to assist workers in these areas to cope with the high cost of living.
Among the cities listed are Johor Bahru, Iskandar Puteri, Alor Setar, Melaka, Penang, Seberang Perai, Ipoh, Shah Alam, Petaling Jaya, Kuala Terengganu, North Kuching, South Kuching, Miri, Kota Kinabalu, Kuala Lumpur, while the major towns are Batu Pahat, Kluang, Kulai, Muar, Segamat, Pasir Gudang, Kulim, Sungai Petani, Langkawi, Kubang Pasu and Kota Bharu.
Also listed are Alor Gajah, Jasin, Hang Tuah Jaya, Seremban, Nilai, Port Dickson, Jempol, Kuantan, Temerloh, Bentong, Manjung, Kuala Kangsar, Taiping, Teluk Intan, Kangar, Ampang Jaya, Kajang, Klang, Selayang, Subang Jaya, Sepang, Kemaman, Dungun, Padawan, Sibu, Kota Samarahan, Bintulu, Sandakan, Tawau, Labuan and Putrajaya.
The ministry said the minimum wage rate would continue to be reviewed to ensure it is in line with current needs and with the objective of achieving a minimum wage of RM1,500 a month in the first five years of Pakatan Harapan’s administration.-Bernama
Source : https://aplmc.com.my/news-letter-2/
Key Points
- Malaysia increased the country’s minimum monthly wage requirements and introduced temporary exemptions for employers under certain conditions
Overview
The government of Malaysia increased the country’s minimum wage to RM 1,500 on January 1, 2023. According to the government announcement, employers in all sectors, regardless of region, who employ five or more employees must adhere to the country’s minimum wage requirements.
The exemption will not apply to employers who carry out professional activities that are classified under the Malaysia Standard Classification of Occupations.
The government also stated that employers with less than five employees would be exempt from minimum wage requirements. This exemption will remain in place until July 1, 2023.
What are the Changes?
Malaysia’s government introduced new monthly salary requirements on January 1, 2023. According to the government announcement, this decision was made to reduce the economic burdens small businesses face in Malaysia.
Source : https://corporateimmigrationpartners.com/malaysia-minimum-salary-changes-and-exemptions/