Written by Super User. Posted in Uncategorised

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.

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.