What Employees Need to Know

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The Government has decided to raise the minimum wages rates from RM900 to RM1000 in Peninsular Malaysia and from RM800 to RM920 in Sabah, Sarawak and Federal Territory of Labuan starting from 1 July 2016. This means that as an employee in Malaysia, you are entitled to the minimum wages. The Minimum Wages Order 2016 does not apply to apprentices and domestic servants (e.g., maids) as defined under Section 2 of the Employment Act 1955 [Act 265], Section 2 of the Sabah Labour Ordinance [Cap. 67] and Section 2 of the Sarawak Labour Ordinance [Cap. 76].
 
Know your rights!
 
The implementation of minimum wages for all employees has significantly changed the wage structure in Malaysia. Employees must be aware of their rights under the law. 
 
 
For further information, please refer to FAQ.
 
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The Minimum Wages Order was enacted to ensure that all employees get benefit from the fruits of development as the country continues to transform into a high-income nation by 2020. The implementation of minimum wages helps to ensure wage increases is in line with the cost of living, thereby enabling employees to afford basic necessities such as food, housing and clothing. Simultaneously, it increases overtime rates, contribution to EPF savings and protection under SOCSO.
 
1. A domestic servant is not subject to Minimum Wages Order 2016
True! This Minimum Wages Order 2016 shall not apply to domestic servants (eg. maid) as defined under Section 2 of the Employment Act 1955 [Act 265], Section 2 of the Sabah Labour Ordinance [Cap. 67] and Section 2 of the Sarawak Labour Ordinance [Cap. 76]. The Order does not apply to apprentices too.
 
2. It’s okay for him to pay me less than minimum wages if I consent to it.
False! Your employer is required to pay you minimum wages. Even if you are consent to it, it is an offence under the law.
 
3. I may be paid lesser than the minimum wages rate as I am a local employee on probation…
False! Employees under probation period are to be paid full minimum wages starting 1 July 2016.
 
4. He can now use the Minimum Wages Order 2016 to pay me less than what I agreed to…
False! Your employer cannot use the Order as an excuse to pay you less than the wages agreed upon in the contract of service.
 

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