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Minimum Wages Order, 2016 (Malaysia)

Minimum Wages Order 2016

Under the minimum wage system, the minimum wage shall be RM900 per month or RM4.33 per hour for employees in Peninsular Malaysia, and the rate will be RM800 per month or RM3.85 per hour for East Malaysia. Minimum Wages Order 2016 comes into operation on 1/7/2016. This order shall apply to all private sector workers (except domestic servant), regardless of the number of employees they have. Monthly salary shall be not less than RM1,000 (RM4.81/hour) in the Peninsular Malaysia, and RM920 (RM4.42/hour) in Sabah, Sarawak and Labuan. Minimum Wages Order (Amendment) 2018 comes into operation on 1/1/2019 that the minimum wage be raised to RM1,100 nationwide. This order shall apply to all private sector workers (except apprentice & domestic servant), regardless of local or foreign employees. Minimum wages is basic wages, excluding any allowances or other payments. Minimum Wages Order 2020 On 10 January 2020, the Human Resources Ministry announced an anticipated increase in the minimum wage for employees working in the country’s 56 city and municipal council areas, including Kota Kinabalu, Sandakan and Tawau in Sabah state. The minimum wage increase has been gazetted and will come into effect on 1 February 2020. Wages will change for city and municipal council employees in the following ways:
  • Minimum monthly wage will be RM1,200.00
  • Minimum hourly wage will be RM5.77
Daily minimum wage rates will depend on the number of days in a work week:
  • 6 working days = RM46.15
  • 5 working days = RM55.38
  • 4 working days = RM69.23
Outside those 56 city and municipal councils:
  • Minimum monthly wage will be RM1,100
  • Minimum hourly wage will be RM5.29
Daily minimum wage rates will depend on the number of days in a work week:
  • 6 working days = RM42.31
  • 5 working days = RM50.77
  • 4 working days = RM63.46
All minimum wage rate categories also apply to employees who are not earning hourly, weekly, or monthly wages. That means employees who are paid on a piece rate, by tonnage, task, trip, or commission, must be paid the equivalent of the minimum wage.