1 Jan Next Year Sees a New Minimum Wage in Malaysia
From 1 January 2019, Malaysian workers are set to receive a change in their minimum wages. The new amount has been set at RM1,050 per month, and this change was made following the National Wage Consultative Council (MPGN)’s proposed recommendations.
This amount works out to the equivalent of RM5.05 per hour for employees who are working on an hourly basis. The changes were reviewed and approved after the Minimum Wages Order 2016 was put forth by the council.
New Minimum Wage In Malaysia
The amount allocated will call for employees in Peninsular Malaysia to be paid a minimum wage starting from RM1,000 per month, while residents in East Malaysia will receive RM920 per month. This change is befitting given the current economical situation, although the Prime Minister’s Department did issue a statement advising caution as a drastic increase in salary could potentially lead to other industrial problems and even risk the economic competitiveness of the country.
Given this, the new proposed minimum wage amount should be gradually increased, allowing time for small businesses especially to make the necessary adjustments to their operational costs. Employers will not be granted any subsidies because of the current financial constraints which are being faced by the new government.
Both employers and businesses are also urged not to impose a price hike on goods and services because of the increase in minimum wages. The Domestic Trade and Consumer Affairs Ministry will be monitoring the situation closely.