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Minimum Wage Order 2022 Kicks In on 1 May 2022

The Minimum Wage Order 2022 (“MWO”) is gazetted and due to be enforced on 1 May 2022, effectively superseding the Minimum Wage Order 2020. The key changes are as follows: –

  • Monthly minimum wage is now fixed at RM1,500 (previously at RM1,200);
  • Minimum wage rate for employees paid on hourly basis is revised to RM7.21 (previously at RM5.77);
  • Minimum wage rates for employees paid on daily basis are respectively revised to RM57.69 (6 days) (previously at RM46.15); RM69.23 (5 days)(previously at RM55.38); and RM86.54 (4 days)(previously at RM69.23); and
  • A temporary exemption period until 31 December 2022 (8 months from now) is given to employers with less than 5 employees but excluded employers who carry out professional activities as per the Malaysia Standard Classification of Occupations (Masco).

Employers are advised to pay due attention and comply with the latest MWO as any such failure to pay minimum wage shall commit an offence that draws a penalty of fine not more than RM10,000 for each employee and increased fine for repeated offence.

Author
Legal Associate at Chee Hoe & Associates.
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