KUALA LUMPUR: A total of 4.37 million workers stand to benefit from the implementation of the Minimum Wage Order of RM1,700 per month from Saturday (Feb 1).
The Human Resources Ministry said in a statement the implementation will take effect nationwide and cover employers with five or more employees, as well as those engaged in professional activities, regardless of the number of employees they have.
For employers with fewer than five employees, the effective date will be Aug 1 this year.
This is to give them enough time to adjust their salary structures and company operations accordingly, the statement read.
"This initiative... (is) in line with the Ekonomi Madani agenda, which emphasises social justice and the well-being of the people to ensure sustainable and inclusive economic growth.
"It also aligns with the government's commitment to raising the standard of the national economy by increasing purchasing power, ultimately improving the quality of life for the people," the ministry said in a statement on Friday (Jan 31).
It also stressed that all employers are obliged to implement and adhere to the ruling and to ensure that their workers receive a basic salary of not less than RM1,700 per month.
Failure to heed this ruling will be an offence and liable to penalties under the National Wages Consultative Council Act 2011.
To ensure a smooth transition, the ministry said it has introduced several support initiatives for employers and employees.
Engagement sessions were held with employers nationwide, it added.
A complaints and monitoring channel has also been set up for employees facing non-compliance issues through the Labour Department of Peninsular Malaysia, the Sabah Labout Department, and the Sarawak Labour Department.
The ministry reminded employers that the minimum wage should not be used as a benchmark for starting salaries for all employees, especially graduates; and that workers should be paid fairly based on their skills.
It said the implementation of the Minimum Wage Order is one of the ministry's key approaches to increasing workers' income, alongside the Progressive Wage Policy and efforts to enhance skills training as a means to improve productivity and wages.
With effective implementation, these initiatives will not only enhance workers' well-being but also contribute to the country's economic growth, it added.
The ministry also called on all employers, employees and industry stakeholders to collaborate in ensuring the successful implementation of this new Minimum Wage Order.
Public who wish to know more about the new minimum wage order can visit: https://minimumwages.mohr.gov.my/
