New Minimum Wage Of RM1,000 Will Start On July 1

New Minimum Wage Of RM1,000 Will Start On July 1

The new minimum wage will come into effect July 1 this year, said Datuk Seri Richard Riot, the Human Resources Minister in a statement.

The Minimum Wages Order 2016 (MWO 2016) would affect all employees in the private sector, regardless of the number of employees they have, except domestic helpers (maids).

“The government has reviewed all recommendations submitted by the National Wages Consultative Council (NWCC), and has taken a balanced approach and considered the interests of both employers and employees (before issuing the order),” he said.

The MWO 2016 set the minimum wages according to region. Here are the rates:

Monthly rate
Daily rate (48 hours)
6-day week
5-day week
4-day week
Peninsular Malaysia
Sabah, Sarawak & Labuan

The daily minimum wage rate is subject to a maximum of 48 hours per week, and the rates differ according to the number of working days in a week.

For workers who are paid on a piecework, tonnage, trip or commission basis, Riot said the monthly salary shall be not less than RM1,000 in the Peninsular Malaysia, and RM920 in Sabah, Sarawak and Labuan.

With the new rates, the guidelines set out by NWCC (Sept 6, 2012) and MWO 2012 will be replaced by the new MWO 2016, when it comes into effect on July 1, 2016.

“The government hopes the new minimum wage rates can boost the income of Malaysians, as well as help improve the country’s economy in achieving the status of a high-income nation by 2020,” he said.


Image from MSNBC

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