New RM1,200 minimum wage
applicable in 57 towns, cities
The government said the new RM1,200 monthly minimum
wage will be implemented on Jan 1, 2020 in major
towns under 57 city and municipal councils across
In releasing the list of the 57 in a statement
yesterday (see table), the ministry of human
resources said the minimum wage would remain at
RM1,100 a month in areas that are not considered
part of these cities and towns.
“The hourly and daily minimum wage rate, as well as
for workers that are paid by piece rate, commission,
tonne and task, will be detailed in the new Minimum
Wages Order,” said the ministry.
It added that the order will be gazetted soon, in
line with the government’s decision to proceed with
the new minimum wage that was first proposed during
the tabling of Budget 2020 in October.
The cabinet, the ministry said, decided on Dec 6 to
go ahead with the proposal to assist workers in
these areas to cope with the high cost of living.
Its implementation will be based on employees’
workplace, which, as defined under Section 2 of the
Employment Act 1955 (Act 265), the Sabah Labour
Ordinance (Chapter 67) and the Sarawak Labour
Ordinance (Chapter 76), is wherever work is carried
out by an employee for his or her employer.
The minimum wage remains applicable for all
employees in the private sector, the ministry said,
except for domestic servants, as stipulated in the
Minimum Wages Order 2018.
The ministry noted that the decision to increase the
minimum wage for workers living in these major towns
is meant to help workers deal with high living
costs, adding the rate will be consistently reviewed
to ensure it is in line with the needs of the time.
“It is also in line with the [government’s] wish to
achieve a minimum wage of RM1,500 a month within the
first five years of the Pakatan Harapan
administration,” the ministry added.