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What is the minimum wage rate in Malaysia?

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Roderick Koh
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What is the minimum wage rate in Malaysia?

Post by Roderick Koh » Wed Mar 27, 2019 11:41 am

Question:
What is the minimum wage rate in Malaysia?

Answer:
Minimum wages is basic wages, excluding any allowances or other payments.

With effective from 1 January 2019, all local and foreign employees who have entered into a contract of service with an employer shall be entitled to receive minimum wages except for domestic servants (e.g. maids, cooks, guards, gardeners and personal drivers) and apprentices who undergo training for a period not less than two years.

The penalties for violation of minimum wage rate are provided in National Wages Consultative Council Act 2011, as follow:

First Offence - Fine of not more than RM10,000 per employee. The court can order the employer to pay each employee the difference between minimum wages rate and the employees's basic wages.

General Penalty - Fine of not more than RM10,000 for each offence where no penalty is provided.

Penalty for Continued Offence - A daily fine of not more than RM1,000 for continuous offence after conviction.

Penalty for Repeated Offence - A fine of not more than RM20,000 or imprisonment not exceeding 5 years.

The current minimum wage rate is provided under paragraph 3 Minimum Wages Order (Amendment) 2018 of the Minimum Wages Order 2018 [P.U (A) 265/2018], as follow:

http://www.federalgazette.agc.gov.my/ou ... %20305.pdf
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Last bumped by Roderick Koh on Wed Mar 27, 2019 11:41 am.



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