Malaysia has now gazetted and will bring into effect the minimum wage of RM1,500 effective 1 May 2022. The Order, which is based on section 23 of the National Wages Consultative Council Act 2011, raises the national minimum wage to RM1,500. However, employers with fewer than five employees are temporarily excluded from the new order until December 31, 2022.

The Order also establishes minimum wage rates for employees who are paid daily or hourly, as shown in the table below:

Minimum wages rate

Monthly

Daily

Hourly

RM1,500

Number of working days in a week

RM7.21

6

5

4

RM57.69

RM69.23

RM86.54

 

If an employer engages in a professional activity as defined by the Malaysia Standard Classification of Occupations (Masco) as published by the Human Resources Ministry, the new RM1,500 rate will take effect on May 1 regardless of the number of people employed. Engineers, lawyers, surveyors, and medical professionals are among those who fall under this category.

Employers that are affected should take steps to ensure that they are in compliance with the Minimum Wages Order 2022. This should include alerting payroll providers, engaging with employees, and noting any wage increases in writing. Employers who are exempted have at least eight months to make these changes, as compliance is not needed until January 1, 2023.

 

Source: https://lom.agc.gov.my/act-view.php?language=BI&type=pua&no=P.U.%20(A)%20140/2022

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Jack Wong Wai Ying

Lam Kwai Soon

Managing Director of Tax

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