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Minimum Wage Order 2022: Action taken against Malaysia employers found incompliant

Minimum Wage Order 2022: Action taken against Malaysia employers found incompliant

A total of RM35,700 in fines has been issued, and 33 employers have faced prosecution between May to December 2022.

Since Malaysia's Minimum Wage Order 2022 came into effect on 1 May 2022, a total of 28,722 workplaces have been inspected by the Ministry of Human Resources.

During these inspections, 33 employers have faced prosecution while RM35,700 in fines have been issued, the Ministry said on Wednesday (29 March 2023)

In lieu of this, the ministry stressed that employers found to have failed to comply with the stipulations under the Order may be subject to prosecution and compounding with a maximum fine of up to RM10,000.

To recap, Malaysia's Minimum Wage Order (MWO) 2022 comprises three segments for employers, and HR professionals to take note of – each of which respectively took effect from 1 May 2022; from 1 May 2022 to 31 December 2022, and from 1 January 2023. The rates (mentioned below) apply to Malaysia's Municipal Council and City Council areas (full list below), and must be made payable to an employee who works in a place of employment in any of them.

Catch up on everything you need to know about the Order, here

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