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 Malaysia.

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.


MKMA5119/The Edge191219

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