Nation

Enforcement of RM1,500 minimum wage starts tomorrow for companies with less than five employees

KUALA LUMPUR: From tomorrow, the enforcement of a minimum wage of RM1,500 will be implemented for employers with fewer than five employees.

An earlier deadline was set by the government at the end of last year, but employers with fewer than five employees were allowed to defer the implementation of the minimum wage for up to six months, compared to the previously set date of 1 January.

The ruling applies to all sectors, including agriculture, farming, and manufacturing, except for domestic services and apprenticeships.

The implementation of the new minimum wage was approved by the government on March 19, 2022, and was gazetted in the Federal Government Gazette issued by the Attorney General's Department on April 27th of the same year.

The Minimum Wage Order (PGM) 2022 was subsequently enforced on May 1, 2022, with a monthly wage rate of RM1,500 for all sectors regardless of the region, for employers who employ five or more workers.

However, for employers with fewer than five employees, the government allowed a deferment of the implementation of the minimum wage until tomorrow.

Minister of Human Resources, V Sivakumar, reportedly stated previously that the government made this decision after considering the readiness of employers in that category to enforce the new minimum wage for their employees.

The decision to defer the implementation was made earlier after the government took into account the views of various stakeholders who were expected to face economic and financial challenges in the coming year.

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