PETALING JAYA: Malaysia will have a uniformed minimum wage of RM1,050 per month or RM5.05 per hour starting next year.
The Prime Minister's Department said in a statement on Wednesday that the move, which will be effective starting Jan1, 2019, was made following recommendations by the National Wage Consultative Council (MPGN).
The recommendations were made after the Minimum Wages Order 2016 was reviewed by the council.
The order had allocated a minimum monthly salary of RM1,000 for peninsular Malaysia and RM920 for east Malaysia.
"No subsidies will be granted to employers due to the current financial constraints faced by the government," said the statement.
The increase in the minimum wage is said to be in accordance with the current economical situation.
"However, we have to be wary of any drastic salary increase that could lead to other problems to industries and jeopardise the country's economic competitiveness.
"As such, the minimum wage should be increased gradually so that businesses, especially small businesses, are not forced to shut down due to sudden increases in operating costs," said the statement.
Businesses and employers are also urged to no increase the price of good and services following the minimum wage increase as the Domestic Trade and Consumer Affairs Ministry have been asked to monitor the situation closely.