Malaysia's HR Ministry shares firm stance against employers who do not comply with minimum wage rules

KESUMA has responded to claims that certain bus drivers are being paid below the RM1,700 minimum, stressing that legal action will be taken against any employer who fails to comply with the Minimum Wage Order 2024.

Malaysia's Ministry of Human Resources (KESUMA) has said it is "taking a serious view" of recent media reports alleging that some express and tour bus drivers in Malaysia are being paid only RM700 per month without fixed allowances.

According to the Ministry, this goes against the provisions set under the Minimum Wage Order 2024 (PGM 2024), which states that all employers must ensure workers receive a minimum monthly wage of RM1,700. This requirement applies regardless of whether wages are paid as a basic salary or calculated based on total monthly income.

KESUMA explained that employers who define a basic salary in employment contracts must set it at no less than RM1,700. If the contract does not specify a basic salary, the employer is still obligated to ensure that the total monthly wage, excluding other allowances, meets the minimum requirement.

The same standard also applies to part-time workers. Under Paragraphs 3(2) and 5(2) of PGM 2024, employees who are paid by the assignment, trip, commission, or other non-salaried methods must still earn at least the minimum wage each month.

The Ministry stressed that these rules are in place to protect the welfare and rights of all workers, and that compliance is mandatory. Employers who fail to comply may face penalties under the National Wage Consultative Council Act 2011 (Act 732).

For first-time offences, employers can be fined up to RM10,000 per affected employee. If the offence continues after conviction, an additional fine of up to RM1,000 can be imposed for each day the violation continues. Repeat offenders may face a higher fine of up to RM20,000 or imprisonment for up to five years.

The Department of Manpower will step up enforcement efforts and monitoring of complaints, especially regarding unauthorised salary deductions or underpayment. If a complaint is upheld in court, employers may be ordered to pay affected employees the outstanding wage amount, as outlined under Section 44 of Act 732.

Workers who believe they are being paid below the minimum wage are encouraged to report the matter to the nearest office of the Department of Manpower.

In a broader move, KESUMA is also reviewing 28 labour-related laws under the Malaysian Labour Law Reform Plan Review Task Force. The review is led by Dr Mohd Shaharin Umar, Deputy Secretary-General (Policy and International), and aims to identify and close any legal loopholes. The study is expected to be completed by May 2026.