PGM for employers with less than five workers postponed to July 1

PUTRAJAYA: The implementation of the Minimum Wage Order (PMG) for employers with less than five workers has been postponed again from Jan 1 to July 1, 2023.

Human Resources Minister V. Sivakumar in a statement today said the decision was made after taking into account the views of the many stakeholders who may be affected by financial and economic uncertainties next year.

"After taking into consideration the willingness of employers who only have less than five workers, the government has decided to postpone the implementation of the order for a minimum wage of RM1,500 for this group from Jan 1 to July 1 next year," he said.

The PGM 2022 has taken effect on May 1 with a minimum wage of RM1,500 per month for employers with five or more workers in all sectors regardless of regions.

However, employers with less than five workers have been exempted and the implementation of the PGM was postponed to Jan 1, 2023.

Meanwhile, Sivakumar said the six-month extended postponement was hoped to give the group the opportunity to coordinate and balance their financial needs.

"This will, more or less, help improve the financial situation of companies having less than five workers," he said.

Nevertheless, Sivakumar said employers having five or more workers will have to continue paying a minimum wage of RM1,500 from May 1.

This includes employers carrying out professional activities under the Malaysia Standard Classification of Occupation (MASCO).

"Employers who are not involved in the postponement must comply with the order by paying the minimum wage of RM1,500 per month to their workers,"

-- BERNAMA