PUTRAJAYA — Sept. 5, 2018: The government will implement a standard minimum wage of RM1,050 a month or RM5.05 per hour nationwide from January 1, following the recommendations of the National Wages Consultative Council that reviewed the Minimum Wages Order 2016.
The Minimum Wages Order 2016 provides a minimum wage of RM1,000 for Peninsular Malaysia and RM920 for Sabah, Sarawak and Labuan.
“The government also decided not to give any subsidies to employers due to the current economic situation of the country,” said the Prime Minister’s Office in announcing the decision today.
The statement also explained that the increase was in line with the current economic situation of the country.
“We must be aware that any drastic increase in salary will cause other problems to the industry which could also jeopardise the country’s competitiveness,” the statement said.
Hence, it would be more appropriate if the minimum wage is raised periodically in the coming years so that industries, especially small and medium ones, will not have to close down due to high operating costs.
Employers and traders are also urged not to raise the prices of goods and services when the new rate is introduced. — Bernama