MALAYSIA’S NEW MINIMUM WAGE RECOMMENDATIONS EXPECTED BY AUGUST 2020

MALAYSIA’S NEW MINIMUM WAGE RECOMMENDATIONS EXPECTED BY AUGUST 2020
01 Jul 2019

The new year has brought some cheer to private-sector blue-collar workers and employees in the lower salary scales with the enforcement of the higher minimum wage of RM1,100 a month or RM5.29 an hour starting Jan 1.

All local and foreign employees who have entered into a contract of service with an employer shall be entitled to receive minimum wages. Domestic servants (e.g. maids, cooks, guards, gardeners and personal drivers) and apprentices who undergo training for a period not less than two years are not covered by the minimum wage act.

Malaysia introduced its minimum wage policy in 2012 after the National Wages Consultative Council Act 2011 was passed by Parliament. Under this law, the National Wages Consultative Council (NWCC) was set up to set the framework for the establishment of minimum wages in Malaysia.

These measures are being adopted by the Malaysian government to help the people cope with the rising cost of living and as a measure to reduce the income gap, public-listed companies will be required to display, in their annual reports, information on the highest wage and median wage ratios, as well as the highest and lowest wages ratios.

 

 

However in recent development, Malaysia’s government expects a new minimum wage recommendation to be provided by the Minimum Wage Technical Committee latest by August next year. Human Resources Minister, M Kulasegaran said the committee is currently carrying out a study and gathering views from stakeholders to determine the most appropriate minimum wage rate. This measure is being undertaken to ease the burden borne by the people especially the younger generation.

 

For more information please visit: http://minimumwages.mohr.gov.my/en/

 

The new year has brought some cheer to private-sector blue-collar workers and employees in the lower salary scales with the enforcement of the higher minimum wage of RM1,100 a month or RM5.29 an hour starting Jan 1.

All local and foreign employees who have entered into a contract of service with an employer shall be entitled to receive minimum wages. Domestic servants (e.g. maids, cooks, guards, gardeners and personal drivers) and apprentices who undergo training for a period not less than two years are not covered by the minimum wage act.

Malaysia introduced its minimum wage policy in 2012 after the National Wages Consultative Council Act 2011 was passed by Parliament. Under this law, the National Wages Consultative Council (NWCC) was set up to set the framework for the establishment of minimum wages in Malaysia.

These measures are being adopted by the Malaysian government to help the people cope with the rising cost of living and as a measure to reduce the income gap, public-listed companies will be required to display, in their annual reports, information on the highest wage and median wage ratios, as well as the highest and lowest wages ratios.

 

 

However in recent development, Malaysia’s government expects a new minimum wage recommendation to be provided by the Minimum Wage Technical Committee latest by August next year. Human Resources Minister, M Kulasegaran said the committee is currently carrying out a study and gathering views from stakeholders to determine the most appropriate minimum wage rate. This measure is being undertaken to ease the burden borne by the people especially the younger generation.

 

For more information please visit: http://minimumwages.mohr.gov.my/en/