Minimum Wage in Malaysia Slated for Review in 2024: Human Resources Minister
The Malaysian federal government will undertake a reassessment of the minimum wage order in 2024, as per Human Resources Minister Steven Sim’s announcement in the Dewan Rakyat on March 14.
This aligns with the National Wages Consultative Council Act 2011 (Act 732), mandating a review of the minimum wage order at least biennially by the National Wages Consultative Council.
The most recent minimum wage regulation established a monthly minimum wage of RM1,500 on May 1, 2022, applicable to all sectors nationwide for employers with five or more employees.
The review procedure will entail gathering input from diverse stakeholders, including employers and employees, and referencing socioeconomic reports such as the Bank Negara Malaysia report.
Additional Information:
- The Malaysian Trades Union Congress (MTUC) has called on the government to boost the minimum wage in response to a recent 2% hike in the service tax.
- Initially, small companies with fewer than five employees were exempted until January 1, 2023, a deadline that was later extended to July of the same year.
- In November 2023, the Economy Minister introduced a progressive wage policy (PWS) as an addition to existing measures. This policy aims to incrementally increase wages based on workers’ skills, experience, and performance, with implementation set to commence in June 2024 through a pilot program involving 1,000 companies.