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:
- employees paid on a monthly basis – RM1,200.00 per month;
- 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
- 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):
- monthly – RM1,100.00;
- 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
- 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): livyen@rdl.com.my