Govt to implement new minimum wage tomorrow without delay

The government has decided to not allow any economic sector or type of employment to delay the implementation of the 2022 Minimum Wage Order.

Human Resources Minister M Saravanan said the government had provided assistance to employers through the Covid-19 assistance package, such as the Wage Subsidy Programme which had helped in sustaining businesses and safeguarding employment.

"This is also to ensure employees benefit from the increase in the minimum wage," he said in a statement today.

Saravanan said the decision on the minimum wage was appropriate to ensure the welfare of workers, especially those with low income, while employers would also benefit from the increase in consumer purchasing power.

"The government also expects the increase in the minimum wage to have a positive impact on the country, employers and employees which will help accelerate the country's economic recovery due to the Covid-19 pandemic.

"The increase in the minimum wage will also help achieve Malaysia's aspiration to become a high-income country by 2030," he added.

RM1.5k new rate

The new minimum wage of RM1,500 a month effective May 1 was officially gazetted last Wednesday (April 27).

The order issued by the human resources minister was published in the Federal Government Gazette and uploaded on the official website of the Attorney-General's Chambers on Thursday (April 28).

According to the gazette under Paragraph 4 (1), an employee who is not paid basic wages but is paid based on piece rate, tonnage, task, trip or commission, the monthly wage rate payable to the employee with effect from May 1 shall not be less than RM1,500.

M Saravanan

For an employer who employs five or more employees or an employer who carries out professional activities classified under the Malaysian Standard Classification of Occupations (MASCO) 2020, the minimum wage rate of RM1,500 is effective from tomorrow.

Meanwhile, for employers who employ less than five employees, the effective minimum wage of RM1,500 will start on Jan 1, 2023.

"Therefore, for the period May 1 to Dec 31, the minimum wage rate that is applicable is RM1,200 per month for employment in City Council or Municipal Council areas, and RM1,100 per month for other areas.

"The postponement of the minimum wage of RM1,500 per month for employers who employ less than five employees is to give the employers the opportunity to make appropriate preparations," he said.

Saravanan said the daily and hourly minimum wage rates as well as the wage rates for workers with no basic salary, but paid according to their jobs and productivity, such as commissions, piece rate, etc, are also detailed in the order.

He said the implementation of the minimum wage did not apply to domestic servants as in the previous order.

"The enforcement of the minimum wage will be implemented by the Manpower Department of Peninsular Malaysia, Sabah and Sarawak. As such, all employers are required to comply with the implementation of the new minimum wage," he added.

- Bernama