PUTRAJAYA, Jan 31 — The new Minimum Wage Order will come into effect nationwide starting tomorrow, according to the Human Resources Ministry (MOHR).
It sets the minimum wage at RM1,700 per month for employers with five or more workers, as well as employers running professional activities, regardless of the number of hires.
For employers with fewer than five employees, the order will take effect August 1, allowing employers sufficient time to make adjustments to their salary structures and company operations.
The ministry said this move would benefit 4.37 million workers, in line with the Madani Economy framework, which emphasises social justice and the well-being of the people to ensure sustainable and inclusive economic growth.
“It is also in line with the government’s commitment to ‘raise the floor’ of the nation’s economy by increasing purchasing power, which in turn improves the quality of life for the people,” it said in a statement today.
MOHR also stressed that all employers are required to comply with the Minimum Wage Order and ensure their workers receive a basic salary of no less than RM1,700 per month.
Failure to comply with the Minimum Wage Order is an offence and may result in a fine as provided under the National Wages Consultative Council Act 2011.
The ministry also reminded that the minimum wage should not be used as a benchmark for starting salaries, especially for graduates, and that workers should be paid fairly based on their skills.
“The implementation of this Minimum Wage Order is one of MOHR’s major approaches to improving workers’ income, alongside the implementation of the Progressive Wage Policy and efforts to enhance skills training as a means of improving worker productivity and wages.
“With effective implementation, this approach will not only improve workers’ well-being but also contribute to the country’s economic growth,” it said.
MOHR urged all employers, workers, and industry stakeholders to collaborate in ensuring the successful implementation of the new Minimum Wage Order.
For more information on the new Minimum Wage Order, visit the website or email enquiries to [email protected].
— Bernama
