New RM1,500 minimum wage order gazetted

 

The new wage order, effective May 1, applies to employers who have five or more employees. (Bernama pic)

KUALA LUMPUR: The new minimum wage of RM1,500 a month effective May 1 was officially gazetted yesterday.

The Minimum Wages Order issued by human resources minister M Saravanan was published in the Federal Government Gazette and uploaded on the official website of the Attorney-General’s Chambers today.

According to the gazette under Paragraph 4(1), an employee who is not paid basic wages but 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.

“For six working days, the employee should be paid RM57.69 a day, RM69.23 a day for five working days and RM86.54 a day for working four days, equivalent to an hourly rate of RM7.21.

“This paragraph shall apply to an employee employed by an employer who employs five or more employees,” according to the gazette titled National Wages Consultative Council Act 2011, Minimum Wages Order 2022.

The paragraph also applies to an employee regardless of the number of employees employed, an employer who carries out a professional activity classified under the Malaysian Standard Classification of Occupations (Masco) as published officially by the human resources ministry.

The gazette also states that the minimum wage of RM1,500 effective May 1 is exempted for an employer who has fewer than five employees and the implementation would only take effect on Jan 1, 2023.

With the latest gazette, the Minimum Wages Order 2020 is now revoked.

Prime Minister Ismail Sabri Yaakob announced on March 19 a minimum wage rate of RM1,500 per month nationwide, starting May 1. - FMT