Minimum Wage in Malaysia

The Prime Minister announced the minimum wage for Peninsular Malaysia to be set at RM900 per month and RM4.33 per hour whereas for East Malaysia and Labuan, the minimum wage is set at RM800 per month and RM3.85 per hour. The rates will cover all employees in all economic sectors except those employed as domestic servants.

The implementation date for the above has been set at 6 months from the date the Minimum Wage Order (Perintah Gaji Minimum) is gazetted. However, micro-enterprises are given a further 6 months to abide with the new ruling due to the impact that it might have on their businesses. The Prime Minister further announced that the additional 6 months grace period does not cover professional firms, for example, legal firms, clinics, accounting firms, etc. and they are required to comply with the ruling 6 months from the date of the gazette irregardless of the size of the company.

I took note that during the announcement, the Prime Minister did not announce the date of gazette therefore we urge members to prepare themselves. Further, the definition of wages was not dealt with in detail but the Prime Minister indicated in his speech that the minimum wage would include certain allowances.