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Minimum Wages To Increase Starting From 1 February 2020
24/02/2020On 10 January 2020, the Ministry of Human Resources released a Gazette (Minimum Wage Order 2020) which increased the minimum wages rates in Malaysia starting from 1 February 2020.
According to the Gazette, the minimum wages payable to an employee who works within the 16 city councils and 40 municipal councils areas are now increased to RM5.77 an hour. For those who are not paid basic wages but are paid wages based only on piece rate, tonnage, task, trip or commission, the monthly wages payable to such employee is at least RM1,200. The 16 city councils and 40 municipal councils areas referred in the Gazette are as follow (see the chart below).
| City Councils | Municipal Councils Areas |
| Johor Baru, Iskandar Puteri, Alor Setar, Melaka, Penang, Seberang Prai, Ipoh, Shah Alam, Petaling Jaya, Kuala Terengganu, Kuching Utara, Kuching Selatan, Miri, Kota Kinabalu, Kuala Lumpur, and Seremban. | Batu Pahat, Kluang, Kulai, Muar, Segamat, Pasir Gudang, Kulim, Sungai Petani, Langkawi, Kubang Pasu, Kota Baru, 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 Semarahan, Bintulu, Sandakan, Tawau, Labuan, and Putrajaya. |
In addition, the minimum wages for those who work in a place other than the 16 city councils and 40 municipal councils areas remain at RM5.29 an hour or RM1,100 monthly. The Gazette revoked the Minimum Wages Order 2018 which sets the minimum wages at RM5.29 hourly or RM1,100 monthly, irrespective of the place of employment. The Gazette is not applicable to a domestic servant.
By Leonard Yeoh, Partner, Tay and Partners and Eri Fu, Legal Associate, Malaysia, a Transatlantic Law International Affiliated Firm.
For further information or for any assistance please contact malaysialabor@transatlanticlaw.com
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