Minimum wage of RM1,700 also applies to foreign workers

 

Employers are required to pay the minimum wage rate, even if the employee agrees to be paid a basic wage lower than the amount. (Bernama pic)

PETALING JAYA: 

The minimum wage of RM1,700, which will take effect from next February, applies to all workers.

This includes non-citizens in the private sector, except for domestic workers and apprenticeship contracts, Bernama reported.

According to the frequently asked questions (FAQ) on the order prepared by the National Wages Consultative Council secretariat, the minimum wage policy must not discriminate against any worker on the grounds of nationality.

This is in line with the ILO Equal Remuneration Convention (No 100), which Malaysia ratified in 1997.

Furthermore, Section 69F of the Employment Act 1955, Section 118B of the Sabah Labour Ordinance (Chapter 67) and Section 119B of the Sarawak Labour Ordinance (Chapter 76) prohibit any form of discrimination between local and foreign workers.

“Employers are required to pay the minimum wage rate to employees, even if the employee agrees to be paid a basic wage lower than the minimum wage.

This is in accordance with Section 43 of the National Wages Consultative Council Act 2011 (Act 732),

 the council said.

Prime Minister Anwar Ibrahim, when tabling the 2025 budget yesterday, announced that the government had agreed to raise the minimum wage from RM1,500 to RM1,700 a month, effective Feb 1.

Anwar, who is also the finance minister, said the government had decided to delay the implementation of the RM1,700 minimum wage for employers with fewer than five employees by six months until Aug 1, 2025.

The FAQ said employees who are not paid a basic salary but are paid wages based on piece rates, tonnage, task rates, travel or commission must receive a monthly wage that is no less than the minimum monthly wage of RM1,700.

It said he implementation of the order does not conflict with employers who adopt the productivity-linked wage system, provided that employees do not receive less than the minimum wage rate.

Employers who fail to comply with the order may face penalties ranging from RM1,000 to RM20,000, or imprisonment for up to five years. - FMT