As an employer or HR professional in Malaysia, staying on top of minimum wage regulations is crucial. This blog post dives into everything you need to know about minimum wage in Malaysia for 2024, including rates for part-timers, hourly equivalents, and regional variations.
What is the Minimum Wage in Malaysia?
The Minimum Wage Order 2022 increased the minimum wage to RM1,500 per month, effective May 1st, 2022. This applies to all employees in Peninsular Malaysia except for:
- Those working in micro-businesses (fewer than 5 employees)
- Businesses located outside of City Council or Municipal Council areas
Even for employees earning commission, piece rates, or other non-standard wages, their total monthly earnings must still be at least RM1,500.
Minimum Wage for Micro Businesses and Businesses NOT in Major Towns
The minimum wage increase under the amendments was deferred for micro-businesses (fewer than 5 employees) and businesses outside City Council or Municipal Council areas until January 1st, 2023. Since then, the minimum wage of RM1,500 applies nationwide.
Minimum Wage for Part-Timers
The minimum wage amendments also apply to employees paid on a daily or hourly basis, including part-timers.
Minimum Wage Adjustment Over the Years
The Malaysian government reviews the minimum wage at least once every two years. The following table shows the minimum wage adjustments over the years:
Staying Compliant with Minimum Wage Regulations
As an employer, adhering to minimum wage regulations is not just ethical but also mandatory by law. Here are some tips for staying compliant:
- Stay updated: Keep yourself informed about any changes or revisions to the minimum wage through official government resources like the Ministry of Human Resources website.
- Review employment contracts: Regularly review employment contracts to ensure they reflect the current minimum wage.
- Maintain proper records: Maintain clear records of employee salaries and working hours to demonstrate compliance during inspections.
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Conclusion
Understanding minimum wage regulations is essential for employers and HR professionals in Malaysia. By following the guidelines outlined in this blog post, you can ensure fair compensation for your employees and avoid any legal complications.
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Disclaimer: This blog post provides general information and shouldn't be interpreted as legal advice. For comprehensive details and the latest updates, refer to the official website of the Ministry of Human Resources Malaysia.
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