New RM1,500 minimum wage order gazetted

The Minimum Wages Order issued by Human Resources Minister Datuk Seri M.Saravanan was published in the Federal Government Gazette and uploaded on the official website of the Attorney-General's Chambers today.

According to the gazette under Paragraph 4 (1), an employee who is not paid basic wages but is paid based on piece rate, tonnage, task, trip or commission, the monthly wage rate payable to the employee with effect from May 1, 2022 shall not be less than RM1,500.

"For six working days, the employee should be paid RM57.69 a day, RM69.23 a day for five working days and RM86.54 a day for working four days equivalent to an hourly rate of RM7.21.

"This paragraph shall apply to an employee employed by an employer who employs five or more employees," according to the gazette titled National Wages Consultative Council Act 2011, Minimum Wages Order 2022.

The paragraph also applies to an employee regardless of the number of employees employed, an employer who carries out a professional activity classified under the Malaysian Standard Classification of Occupations (MASCO) as published officially by the Ministry of Human Resources.

In addition the gazette states that the minimum wage of RM1,500 on May 1 is exempted for an employer who employs less than five employees and the implementation will only take effect on January 1, 2023.

Meanwhile, in relation to an employee who is paid according to the place of employment for the period May 1 to Dec 31, the monthly wage is RM1,200 in City Council or Municipal Council areas and RM1,100 for areas other than City Council or Municipal Council areas.

With that, the minimum wages order 2020 is now revoked.

Earlier, the Prime Minister, Datuk Seri Ismail Sabri Yaakob announced a minimum wage rate of RM1,500 per month nationwide, starting May 1.