National Wages Consultative Council Act, 2011 (Malaysia)

National Wages Consultative Council Act 2011

The National Wage Consultative Council Act 2011 obligates the government to review the minimum wage every two years. The last time the minimum wage was reviewed and increased was on February 1, 2020. The wage increase will only apply to businesses in the private sector that have five employees or more. Human Resources Minister Datuk Seri M. Saravanan has said that the government is prepared to give leeway to businesses that have less than five employees, for one year. This can be extended upon approval from the Prime Minister. As such, employers who have less than five employees will have to pay the 1,500 ringgit minimum wage from January 1, 2023. However, an employer whose business activities is classified under the Malaysia Standard Classification of Occupations (MASCO) must also pay the 1,500 ringgit (US$341), regardless of the number of employees they have. The new minimum wage equates to:

• 57.69 ringgit (US$13.13) per day for employees working six days per week;
• 69.23 ringgit (US$15.76) per day for employees working five days per week; and
• 86.54 ringgit (US$19.70) per day for employees working four days per week.

The minimum wage for city council or municipal council areas For an employee whose place of employment is located in a city council or municipal council, their monthly minimum wage is 1,200 ringgit (US$273). This is applicable from May 1, 2022, to December 31, 2022. This equates to:

• 46.15 ringgit (US$10.51) per day for employees working six days per week;
• 55.38 ringgit (US$12.61) per day for employees working five days per week; and
• 69.23 ringgit (US$15.76) per day for employees working four days per week.