‘Issue new MWO to implement wage ruling’

PETALING JAYA: A new Minimum Wages Order (MWO) will pave the way for the minimum wage ruling to be implemented in Malaysia, say legal experts.

They said Human Resources minister was empowered to issue the order for it to be gazetted without having to go through Parliament.

Senior industrial relations law practitioner Raymond TC Low said that for now, industries should wait for the new order, which would contain specifics on the scope of the new minimum wage and how the new ruling is going to be implemented.

“The current MWO was made in 2020 that set the minimum wage at RM1,200 for city council areas and RM1,100 for non-city council areas. This new minimum wage (ruling) will be captured by the order, which is going to be issued by the minister.

“It doesn’t go to Parliament because the order will be a subsidiary legislation under the National Wages Consultative Council Act 2011, which confers the power to the minister to set the minimum wage,” he said yesterday.

Until the new MWO is out, Low said no action could be taken against companies that failed to adhere to the new minimum wage come May 1.

“There needs to be a (new) order. Otherwise, the existing MWO 2020 will continue to apply.

“A mere announcement (of a new one) has no force of law,” he said.

However, Low noted that the Human Resources Ministry would have sufficient time to make the order, as it was a simple procedure and employers should get ready to immediately comply with the new order in the event that it comes into force on May 1.

Further, when the new order is finally up, some sectors may be exempted from the new order and certain sectors of employers are hoping to see whether there are any avenues under the new Order to apply for an exemption with the ministry, he said.

Weighing in, employment law and industrial relations expert Datuk T. Thavalingam said a minimum wage was only applicable to workers’ basic salary that excludes other components of the pay, such as allowances, service charges or incentives.

“Employers have to be careful when they classify the workers’ basic salary, by not including what’s excluded.

“The Federal Court had in a recent landmark case addressed and made it clear what constitutes basic wage.

“As to the uncertainties of what industries will be exempted, employers should wait for the order to clear the air,” he said.