Revision to Minimum Wages with effect from 1st February 2020

The Minimum Wages Order 2020 came into operation on 1st February 2020.  The Order covers all employees except domestic servants. 

Briefly, there will be 2 sets of minimum wages, depending on the place of employment.  

The minimum wages for employees working in any of the 16 city council areas and any of the 40 municipal council areas listed out in the Schedule to the Minimum Wages Order 2020 are as follows:

  1. employees paid on a monthly basis – RM1,200.00 per month;
  2. employees paid on a daily basis – RM46.15 per day if the employee works 6 days a week, RM55.38 per day if the employee works 5 days a week and RM69.23 per day if the employee works 4 days a week; and
  3. employees paid on an hourly basis – RM5.77 per hour. 

The 16 city council areas are: 

Alor Setar
Kota Kinabalu
Kuching Utara
Pulau Pinang
Ipoh
Kuala Lumpur 
Melaka Bersejarah
Seberang Perai
Iskandar Puteri
Kuala Terengganu
Miri
Seremban
Johor Bahru
Kuching Selatan
Petaling Jaya
Shah Alam

The 40 municipal council areas are:

Alor Gajah
Jempol
Kuala Kangsar
Muar
Sepang
Ampang Jaya
Kajang
Kuantan
Padawan
Sibu
Batu Pahat
Kangar
Kubang Pasu
Pasir Gudang
Subang Jaya
Bentong
Kemaman
Kulai
Port Dickson
Sungai Petani
Bintulu
Klang
Kulim
Putrajaya
Taiping
Dungun
Kluang
Labuan
Sandakan
Tawau
Hang Tuah Jaya
Kota Bharu
Langkawi
Segamat
Teluk Intan
Jasin
Kota Samarahan
Manjung
Selayang
Temerloh

As for employees who are working in other areas than those set out in the Schedule, the applicable minimum wages are (following the above categorization):

  1. monthly – RM1,100.00;
  2. daily – RM42.31 if the employee works 6 days a week, RM50.77 if the employee works 5 days a week and RM63.46 if the employee works 4 days a week; and
  3. hourly – RM5.29.

The Minimum Wages Order 2020 also states that the minimum wage for employees who work in areas other than the city council or municipal council areas specified in the Schedule, and who are paid wages based only on piece rate, tonnage, task, trip or commission, shall not be less than RM1,100.00 per month.

Contributed by: 

Tham Li Vyen (Partner)
(T): +603-2632 9875
(E): [email protected] 

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