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Malaysia’s new minimum wages take effect today

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The new minimum wage rates, announced by Prime Minister Datuk Seri Najib Tun Razak last October, are being implemented from today.

The Minimum Wage Order stipulates that employees in Peninsular Malaysia are to be paid a minimum of RM1,000 per month .

Additionally, employees in Sabah, Sarawak and the Federal Territory of Labuan are to be paid a minimum of RM920 per month.

Human resources minister Datuk Seri Richard Riot Jaem reportedly announced in a press release yesterday that “the ministry stresses that the Minimum Wage Order 2016, gazetted on April 29, 2016, will come to effect July 1, without any further delays,” as in an article by New Straits Times.

“Claims that the country’s economic position was not good is also false, as proven in several indicators, such as the labour productivity growth in 2015 rose to RM75,538 from RM73,091 in 2014,” he said.

Minimum wage will not impact retrenchment rate in Malaysia
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Also in response to the claims, The Star reported that Riot has announced that those who do not heed will be liable to a fine and possibly even a jail term.

These enforcements are being done in order to ensure employers are complying with this new order.

“Riot said the government had studied all views and recommendations submitted by the National Wages Consultative Council before setting the new rates and had taken a balanced approach where the interests of both employers and employees were looked into.”

Image: 123rf 

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