New minimum wage order comes into force tomorrow, benefiting 4.37 million workers - KESUMA

It sets the minimum wage at RM1,700 per month for employers with five or more employees, as well as employers running professional activities, regardless of the number of employees they hire.

For employers with fewer than five employees, the order will take effect on Aug 1, allowing employers sufficient time to make adjustments to their salary structures and company operations.

The ministry said this move would benefit 4.37 million workers, in line with the MADANI Economy framework, which emphasises social justice and the well-being of the people to ensure sustainable and inclusive economic growth.

"It is also in line with the government's commitment to 'raise the floor' of the nation's economy by increasing purchasing power, which in turn improves the quality of life for the people," it said in a statement today.

KESUMA also stressed that all employers are required to comply with the Minimum Wage Order and ensure that their employees receive a basic salary of no less than RM1,700 per month.

Failure to comply with the Minimum Wage Order is an offence and may result in a fine as provided under the National Wages Consultative Council Act 2011 (Act 732).

The ministry also reminded that the minimum wage should not be used as a benchmark for starting salaries, especially for graduates, and that workers should be paid fairly based on their skills.

"The implementation of this Minimum Wage Order is one of KESUMA's major approaches to improving workers' income, alongside the implementation of the Progressive Wage Policy and efforts to enhance skills training as a means of improving worker productivity and wages.

"With effective implementation, this approach will not only improve workers' well-being but also contribute to the country's economic growth," it said.

Therefore, KESUMA calls on all employers, workers, and industry stakeholders to collaborate in ensuring the successful implementation of the new Minimum Wage Order.

For more information on the new Minimum Wage Order, the public can visit the official website at https://minimumwages.mohr.gov.my/ and for any inquiries, employers or employees can email [email protected].

-- BERNAMA