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Malaysia’s new minimum wage to take effect on 1 Feb: What HR should note

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Malaysia’s Minimum Wages Order 2020 has been gazetted, and will take effect on 1 February 2020. These rates will now apply to 56 Municipal Council and City Council areas (full list below).

Under this new Order, the new minimum wage rates payable to an employee who works in a place of employment in any of the City Council or Municipal Council areas specified will be as follows:

Minimum wage rates applicable to the 56 areas gazetted

The minimum wage rate applicable to employees who work in a place of employment within the 56 specified areas will be as per the table below:

Note: Right-click to view larger image in a new tab.

As further stated in the Order, an employee working in a place of employment in any of these 56 areas specified, and is paid wages based on piece rate, tonnage, task, trip or commission, should be paid no less than RM1,200 per month.

Minimum wage rates applicable outside these 56 gazetted areas

As for areas outside of these 56 City Council or Municipal Council areas, the minimum wage payable follows the table below:

Note: Right-click to view larger image in a new tab.

In these places, if an employee is paid based only on piece rate, tonnage, task, trip or commission, they are entitled to a minimum monthly wage rate of no less than RM1,100.

Following the release of the gazette, Human Resources Minister M Kulasegaran has stated that the “smooth and effective implementation” of the minimum wage will only be known by 28 February, Bernama reported.

“We can only know the extent of the compliance after the payday which is on 28 February or 1 March,” he said, due to it only taking effect at the beginning of the month.

Full list of 56 Municipal Council and City Council areas affected

City Council areas 

Johor Bahru, Iskandar Puteri, Alor Setar, Melaka Bersejarah, Pulau Pinang, Seberang Perai, Ipoh, Shah Alam, Petaling Jaya, Kuala Terengganu, Kuching Utara, Kuching Selatan, Miri, Kota Kinabalu, Kuala Lumpur, and Seremban.

Municipal Council areas

Batu Pahat, Kluang, Kulai, Muar, Segamat, Pasir Gudang, Kulim, Sungai Petani, Langkawi, Kubang Pasu, Kota Bharu, Alor Gajah, Jasin, Hang Tuah Jaya, Port Dickson, Jempol, Kuantan, Temerloh, Bentong, Manjung, Kuala Kangsar, Taiping, Teluk Intan, Kangar, Ampang Jaya, Kajang, Klang, Selayang, Subang Jaya, Sepang, Kemaman, Dungun, Padawan, Sibu, Kota Samarahan, Bintulu, Sandakan, Tawau, Labuan, and Putrajaya.

Photo / 123RF

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