Minimum Wage Act Malaysia

There has been much debate in malaysia surrounding the controversial rm1 200 minimum wage.

Minimum wage act malaysia. This page provides malaysia minimum wages actual values historical data forecast chart statistics economic calendar and news. The provisions of the wages council act 1947 or any order made thereunder. Minimum wages in malaysia increased to 1200 myr month in 2020 from 1100 myr month in 2019. There is a tripartite body known as the national wages consultative council which is formed to recommend the minimum wages rate to the government and once approved by the government the minister of human resources makes a minimum wages order.

The current minimum wage is rm1 000 in peninsular malaysia and rm920 in sarawak and sabah. While employees in sabah sarawak and the labuan federal territory will be entitled to a minimum of myr800 per month. Employees on estates to be provided with minimum number of days work in each month 1. Minimum wages in malaysia averaged 1000 myr month from 2013 until 2020 reaching an all time high of 1200 myr month in 2020 and a record low of 900 myr month in 2014.

Malaysia s minimum wages policy is decided under the national wages consultative council act 2011 act 732. Rm1000 per month or rm4 81 per hour on the peninsula and rm920 per month or rm4 42 per hour for the states of sabah sarawak and labuan. The national minimum wage will be myr900 per month for employees in peninsular malaysia. While employees in sabah sarawak and the labuan federal territory will be entitled to a minimum of myr800.

The implementation of the minimum wage of rm1 200 a month in major urban areas and rm1 100 a month in areas outside those is based on their work place which as defined under section 2 of the employment act 1955 act 265 the sabah labour ordinance chapter 67 and the sarawak labour ordinance chapter 76 is wherever work is carried out by employees for their employers. Kuala lumpur nov 2 after workers protested against the minimum wage quantum set at rm1 050 monthly the government today raised it to rm1 100 starting january 1 next year. The minimum wages order amendment 2018 came into effect on jan 1 2019 providing for a minimum wage set at rm1 100 per month or at rm5 29 per hour for workers paid at the hourly rate. Most countries have a nation wide minimum wage that all workers must be paid.

However it has now been gazetted and will officially encompass 56 city and municipal council areas from 1 february 2020. The gazette was released by the human resources ministry on 10 january 2020 under the. Warrants and orders issued or made under this act in malaysia for service or execution in the republic of singapore.