Tukar Bahasa: English

DATE EVENTS
4 August 2010 Minimum Wages Workshop held at Putrajaya International Convention Centre (PICC)
24 August 2010 Focus Group Meeting with employer representatives
26 August 2010 Focus Group Meeting with employee representatives
1 September 2010 Focus Group Meeting with government agencies and academicians
7 - 14 February 2011 Minimum Wages Lab jointly held with World Bank at PICC, Putrajaya
12 February 2011 Minimum Wages Open Day at PERKESO, Jalan Tun Razak, Kuala Lumpur
21 April 2011 The appointment of National Wages Consultative Technical Committee
30 June 2011 The approval of Minimum Wages Consultative Council Bill 2011 by the House of Representatives
12 July 2011 The approval of Minimum Wages Consultative Council Bill 2011 by the Senate
25 July – 11 August 2011 Consultation sessions with the public throughout Malaysia
26 August 2011 Minimum Wages Consultative Council Bill 2011 was given Royal Assent by SPB Yang di-Pertuan Agong
15 Sept 2011 The National Wages Consultative Council Act 2011 [Act 732] is gazetted.
30 Apr 2012 Announcement of the Minimum Wages Order by Right Honourable Prime Minister Dato' Sri Najib Tun Razak on the eve of Labour Day.
16 July 2012 The Minimum Wages Order 2012 is gazetted. The Order states the followings:
  • Minimum wages rate of RM900 per month/ RM4.33 per hour for Peninsular Malaysia and RM800 per month/ RM3.85 per hour for Sabah, Sarawak and Labuan.
  • Dates of enforcement:
    • 1 January 2013 for employers with more than five employees or employers who work in a professional capacity as determined by the Malaysia Standard Classification of Occupations (MASCO).
    • 1 July 2013 for employers with five employees or less (also known as micro-enterprises).
For more information on the Minimum Wages Order 2012, please click this link.
28 Dec 2012 The Minimum Wages (Amendment) Order 2012 is gazetted which contain the deferment of the Order as follows:
  • 632 employers (employing more than five employees)
  • Hotels (until 30 Sept 2013)
    • Malaysian Association of Hotels (MAH)
    • Association of Hotel Employers, Peninsular Malaysia (AHE)
    • Malaysian Association of Hotel Owners (MAHO)
    • Malaysian Budget Hotel Association (MBHA)
  • Security Services (until 31 March 2013)
    • Security Services Association Malaysia (PPKKM)
    • Asian Professional Security Association (APSA)
  • Bus Services (until 31 March 2013)
    • Pan Malaysian Bus Operators Association (PMBOA)
1 Jan 2013 Commencement of the Minimum Wages Order 2012 for all employers employing more than five employees. The Order also applies to employers who work in a professional capacity as determined by the Malaysia Standard Classification of Occupations (MASCO).
28 May 2013 The Minimum Wages (Amendment) Order 2013 which grants deferment to SMEs with foreign employees until 31 December 2013 is gazetted. In addition, 40 big employers are also given deferment until 31 December 2013 in respect of their foreign employees. The list of employers approved for deferment can be found here.
1 July 2013 Commencement of the Minimum Wages Order 2012 for all employers having five employees or less.
29 July 2013 The Minimum Wages (Amendment) (No.2) Order 2013 which grants a deferment to micro-enterprises with respect to their local employees until 31 December 2013 is gazetted. The list of employers approved for deferment can be found here.
10 Sept 2013 The Minimum Wages (Amendment) (No.3) Order 2013 which grants deferment to individual companies until 31 December 2013 is gazetted. The list of employers approved for deferment can be found here.
3 December 2013 Launching of the Minimum Wages Portal.
10 December 2013 Minimum Wages Portal Clinic at Penang.
17 December 2013 Minimum Wages Portal Clinic at Johor Bahru.
1 Jan 2014 Commencement of the Minimum Wages Order 2012 for SME employers with foreign employees. The Order also commences for employers who have received deferment approval as listed in the Minimum Wages (Amendment) Order 2013, Minimum Wages (Amendment) (No.2) Order 2013 and Minimum Wages (Amendment) (No.3) Order 2013.
28 January 2014 Minimum Wages Portal Clinic at Pahang.
24 February 2014 Minimum Wages Portal Clinic at Kuching, Sarawak.
3 March 2014 Minimum Wages Portal Clinic at Kota Kinabalu, Sabah.
25-26 March 2014 Seminar with ILO and World Bank on the Review of the Minimum Wages Order 2012
22 April 2014 Minimum Wages Portal Clinic at Miri, Sarawak.
23 April 2014 Minimum Wages Portal Clinic at Sandakan, Sabah.
19-28 August 2014 Focus Group Discussions (FGD) on the Review of Minimum Wages Order 2012 with employers' associations and trade unions throughout Malaysia.
13-14 October 2014 Seminar on the Implementation of Minimum Wages: Lessons Learnt from the ASEAN Member States and Dialogue Partners.
[top]

PrintEmail

Restructuring of Wages

Situation 1
Company A was granted a deferment from 1 October 2013 to 31 December 2013. Can Company A restructure their employee’s wages?

[accordion align="" first_one_open="false"] [pane title="Click to View Answer"]

YES it can, before 1 January 2014 company A can still negotiate with its employees during this period of deferment (1 October 2013 till 31 December 2013) for allowances (if applicable) to be converted into the employees’ basic wages.

[/pane] [/accordion]

Situation 2
Samad is 59 years old and works for Company XYZ in Ipoh, Perak on 10 September 2012. He was paid a basic wages of RM700.00, food allowance of RM80.00 and travelling allowance of RM60.00 He was hired under a fixed-term employment contract for a period of 1 year. Can Samad’s salary be restructured by converting the above-said allowances into his basic wages?

[accordion align="" first_one_open="false"] [pane title="Click to View Answer"]

YES. The employer may negotiate with Samad to have his salary restructured and reflect the minimum wages before the Minimum Wages Order 2012 came into force. However, in Samad’s case, the restructure is only limited to food allowance since food allowance is included in the definition of ‘wages’ under Section 2 of the Employment Act 1955. The travelling allowance cannot be converted into his basic wages since travelling allowance or the value of any travelling concession is defined as ‘non-wages’ under the same Act.

[/pane] [/accordion]

Situation 3
Bahadur Hossein, a foreign employee, was offered to work as a production operator in a rubber factory beginning 1 November 2012. He was paid a monthly basic wages of RM500.00. In pursuance to the implementation of the minimum wages on 1 January 2013, his employer restructured his wages and was converted into RM900 monthly. Should the employer also restructure the wages of all other senior workers who have been working longer at the factory?

[accordion align="" first_one_open="false"] [pane title="Click to View Answer"]

NO. The Company needs to restructure only Bahadur Hossein’s salary. Nevertheless, wage restructuring for all employees is highly encouraged to ensure harmonious industrial relations at the workplace.

[/pane] [/accordion]

Probation Period

Situation 4
Ismail Khan is a foreign employee who was hired under a fixed-term contract for a period of 3 years beginning 16 July 2013. Can he be placed under probation?

[accordion align="" first_one_open="false"] [pane title="Click to View Answer"]

NO. The Government’s current policy states that a probation period is not applicable to foreign employees effective 1 July 2013. Refer here.

[/pane] [/accordion]

Work Situations

Situation 5
Ali works at a retail shop owned by his family with a basic wages of RM500.00. Is the minimum wages applicable to Ali?

[accordion align="" first_one_open="false"] [pane title="Click to View Answer"]

YES. Ali is entitled to minimum wages under The Minimum Wages Order if he is hired under a contract of service. Refer to Relevant Law.

[/pane] [/accordion]

Situation 6
Kak Timah is a maid. Is she entitled to minimum wages?

[accordion align="" first_one_open="false"] [pane title="Click to View Answer"]

NO. The Minimum Wages Order 2012 excludes domestic servant (e.g. maid, gardener and personal driver) from the application of the minimum wages.

[/pane] [/accordion]

Compliance

Situation 7
On 1 February 2013, TUX Ptd. Ltd. which runs its operations in Sibu, Sarawak, issued a pay slip for one of its employee which stated that his gross pay was RM800 a month (basic salary of RM600 and RM200 for other allowances). Has TUX Ptd. Ltd. complied with the Minimum Wages Order?

[accordion align="" first_one_open="false"] [pane title="Click to View Answer"]

NO. TUX Ptd. Ltd. has not complied with the Minimum Wages Order 2012 because the basic wages of RM600 is less than the minimum wages rate. Minimum wages is defined as basic wages whereby the basic wages for an employee in Sabah, Sarawak and Labuan shall not be less than RM800 a month.

[/pane] [/accordion]

Changes to Collective Agreement

Situation 8
Murni Plantation Sdn Bhd manages a palm oil plantation in Kelantan with 200 employees. The Company has an “in-house union”, known as Murni Plantation Employees Union. A Collective Agreement was signed between the union and the employer on 4 July 2011 and is valid until 3 July 2014. The Collective Agreement states that each employee be paid a basic wages of RM500.00 a month. Is Murni Plantation Sdn Bhd bound to revise the Collective Agreement in order to comply with the Minimum Wages Order?

[accordion align="" first_one_open="false"] [pane title="Click to View Answer"]

YES. The employer needs to revise the terms agreed in the Collective Agreement to reflect the rate for basic wages which shall not be less than that stated in the Minimum Wages Order 2012. The employer may seek to apply for a variation to the Collective Agreement in the Industrial Court for this purpose.

[/pane] [/accordion]

Situation 9
Cuci Cleaning Services Sdn. Bhd has entered into a cleaning contract with OMG Medical Centre for 2 years, from 15 January 2012 until 14 January 2014. Among the terms of contract provided includes a total of 30 local employees be paid RM600 a month. Does Cuci Cleaning Services Sdn Bhd need to revise its terms under the contract to ensure compliance with the Minimum Wages Order 2012?

[accordion align="" first_one_open="false"] [pane title="Click to View Answer"]

YES. Cuci Cleaning Services Sdn Bhd has to comply with the Minimum Wages Order.

[/pane] [/accordion]

Overtime Pay Calculation

Situation 10
Muthu is a local welder in Johor Bharu who commenced work on 5 May 2013 with a basic wages of RM630 and no other allowances. He has been placed under a probation period for 3 months as per the contract of service. During this period, his employer ordered Muthu to work overtime. Does the employer need to calculate the overtime pay based on Muthu's basic wages during the probation period which is RM630 a month, or the basic wages of RM900 a month?

[accordion align="" first_one_open="false"] [pane title="Click to View Answer"]

The calculation of the overtime pay for Muthu has to be based on the basic wages of RM630 a month. However, if Muthu has completed his 3 months probation period, the overtime will be based on RM900

[/pane] [/accordion]

[top]

PrintEmail

Background to Minimum Wages In Malaysia

The National Minimum Wages initiative for Malaysia was announced by the Prime Minister in his Budget Speech on 15 October 2010. It is one of the Government’s policy instruments vide New Economic Model (NEM) to ensure inclusiveness by transforming the economy from a middle-income to a high-income economy by the year 2020. The policy is meant to ensure workers can meet their basic needs and create the necessary environment for industries to move up their value chain. Minimum wages is basic wages, excluding any allowances or other payments.

MINIMUM WAGES RATE
TERRITORY Monthly Hourly Daily
(As per the Guidelines on the Implementation of the Minimum Wages Order 2012)
Number of days worked in a week
6 5 4
Peninsular Malaysia RM900 RM4.33 RM34.62 RM41.54 RM51.92
Sabah, Sarawak and Labuan RM800 RM3.85 RM30.77 RM36.92 RM46.15

The Minimum Wages Policy also applies to employees who are paid on piece-rates, tonnage, trip- or commission-based. Employers are required to supplement the wages of these employees if their income does not meet RM900 per month for Peninsular Malaysia and RM800 for Sabah, Sarawak and Labuan.

PrintEmail

  • 1
  • 2
   
Mengapakah gaji minimum dilaksanakan?
Bolehkah syarikat saya memperoleh pengecualian pelaksanaan gaji minimum?
Bilakah tarikh kuat kuasa
Perintah Gaji Minimum?
   
 
 
Mengapakah gaji minimum dilaksanakan?
Apakah bayaran yang boleh
diambil kira dalam perkiraan
gaji minimum?
Siapakah yang tertakluk di
bawah gaji minimum?
   
 
Kenyataan akhbar
Undang-undang berkaitan
Soalan Lazim
   
   
   
   

BERITA TERKINI