4.37 million workers in Malaysia stand to benefit from the implementation of the Minimum Wage Order of RM1,700 per month from February 1. The Human Resources Ministry said the implementation will take effect nationwide and cover employers with five or more employees, as well as those engaged in professional activities, regardless of the number of employees they have. For employers with fewer than five employees, the effective date will be August 1 this year.
The Ministry said the initiative was in line with the government’s economic agenda which emphasises social justice and the well-being of the people to ensure sustainable and inclusive economic growth. It added that the move also aligns with the government’s commitment to raising the standard of the national economy by increasing purchasing power, ultimately improving the quality of life for the people. It also stressed that all employers are obliged to implement and adhere to the ruling and to ensure that their workers receive a basic salary of not less than RM1,700 per month. Failure to heed the ruling will be an offence and liable to penalties under the National Wages Consultative Council Act 2011.
The ministry reminded employers that the minimum wage should not be used as a benchmark for starting salaries for all employees, especially graduates; and that workers should be paid fairly based on their skills. It said the implementation of the Minimum Wage Order is one of the ministry’s key approaches to increasing workers’ income, alongside the Progressive Wage Policy and efforts to enhance skills training as a means to improve productivity and wages.
In a related development, the Malaysia Trades Union Congress (MTUC) has called on the Labour Department to ramp up enforcement efforts to ensure all employers comply with the newly implemented minimum wage. MTUC president Mohd Effendy Abdul Ghani said without strong enforcement, many workers risk being excluded from the benefits of the new minimum wage, thus undermining the policy’s objective. Effendy said the minimum wage should not be seen as a fair pay rate for all workers but rather as a safety net for those without formal education or specialised skills.
“The increase in the minimum wage should not be regarded as a fair salary for those with academic qualifications or technical expertise.”
