KUALA LUMPUR: The minimum wage in 57 cities and towns will be raised to RM1,200 monthly from Jan 1.
A Human Resource Ministry statement said it would benefit workers in 57 locations, including all 13 state capitals and three federal territories.
The statement said the minimum wage for non-urban areas, small towns and rural areas would remain at the present rate of RM1,100.
“The decision for the new minimum wage in cities was decided by the Cabinet on Dec 6, after the tabling of the 2020 Budget.
“The higher cost of living and expenses in cities as compared to small towns and rural areas led to the decision made by the Cabinet.
“The new minimum wage decision was done for those working in major cities, and it is expected to be gazetted very soon.”
The ministry said the new wage would also apply to the private sector as stated under Section 2 of the Employment Act 1955 (Act 265), Sabah Labour Ordinance (Chapter 67) and the Sarawak Labour Ordinance (Chapter 76).
It said the minimum wage rates must be paid according to the National Minimum Wage Order 2019.
“Minimum wage rates will be constantly reviewed to ensure that they are in line with current cost of living and needs.
“The government also hopes to raise the minimum wage to RM1,500 within the first five years of the Pakatan Harapan administration,” it said.
Prior to the tabling of the 2020 Budget, the Federation of Malaysian Manufacturers (FMM), among others, had proposed that a higher minimum wage be set for workers in major cities.
It had stated that the minimum wage quantum could not be standardised across the country.
Instead, it should be differentiated by geographical location, between rural and urban areas and economic sub sectors.