KUALA LUMPUR: The increased minimum wage of RM1,500 per month for employers with less than five staff will only take effect on Jan 1, 2023.
Human Resource Minister Datuk Seri M. Saravanan said the postponement of the minimum wage for this category of employers was to provide an opportunity for them to make appropriate preparations.
"For employers with less than five staff during the period of May 1 to Dec 31, the applicable minimum wage rate will remain the same as the minimum wage order in 2020, which is RM1,200 per month for those employed at the city council or municipality areas; and RM1,100 per month for other areas," he said in a statement today detailing the latest methods to implement the Minimum Wage Order 2022.
Saravanan said the government has decided that the method of implementing the 2022 minimum wage, which was gazetted on April 27, would apply to employers with more than five staff effective May 1.
"The latest minimum wage also applies to employers that carry out a professional activity classified under the Malaysian Standard Classification of Occupations (MASCO) 2020, namely science and engineering professionals; health; teaching; business and administration; information and communication technology; legislation; hospitality and related services; social and cultural and regulatory bodies regardless of the number of employees employed."
Saravanan added there will be no deferment granted to any economic sector or type of employment following the government's Covid-19 assistance packages to employers, such as the Wage Subsidy Programme which has been able to maintain business and employment.
"This is also to ensure that employees benefit from the increase in the minimum wage.
"Daily and hourly minimum wage rates, as well as salary rates for employees who do not have a basic salary, but are paid through duties and productivity such as commissions, piece rate and so on, are also detailed in the Minimum Wage Order 2022.
"The implementation of this minimum wage does not apply to domestic servants as stated in the previous minimum wage order. However, the salary for Indonesian domestic servants will not be less than the minimum wage adopted in this country, as agreed in a memorandum of understanding regarding the acquisition and protection of Indonesian domestic servants in Malaysia signed on April 1, 2022."
Saravanan said the enforcement of the minimum wage will be implemented by the Labour Department in Peninsular Malaysia, Sabah and Sarawak.
"Accordingly, all employers are required to comply with the implementation of this new minimum wage.
"The government also expects that the increase in the minimum wage will have a positive impact on the country; employers and employees, which will help accelerate the country's economic recovery in the Covid-19 pandemic.
"The increase in minimum wage will also help achieve Malaysia's aspiration to become a high-income nation by 2030.
"The minimum wage rate which was decided upon is appropriate to ensure the welfare of workers, especially in ensuring that those with low incomes are protected. In fact, employers will also benefit from increased consumer purchasing power," he said.