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Malaysia’s Minimum Wage System is Making Progress

20/03/2022

Malaysia’s Minimum Wage System is Making Progress

The RM1500 minimum wage system will be introduced on May 1st, according to the Prime Minister! The government has modified the minimum wage structure for the fifth time.

Malaysia’s original version of the minimum wage system went into effect on April 30, 2012. In January 2013, the first minimum wage regime went into effect. The government mandated that the minimum wage in West Malaysia be RM900, or RM4.33 per hour, at the time. East Malaysia’s minimum salary is RM800, or RM3.85 per hour.

On October 23, 2015, the second minimum wage review was completed, and it went into effect in July 2016. In West Malaysia, the minimum wage is RM1,000, while in East Malaysia, it is RM920.

West Malaysia and East Malaysia harmonised their minimum wage system on January 1, 2019, which is now RM1,100 per month. From 1 February 2020, the minimum wage in urban areas will be increased to RM1,200.

On March 19, 2022, Prime Minister Datuk Seri Ismail Sabri stated that the minimum wage would be raised to RM1,500 from May 1. Large corporations and government-linked companies will be the first to implement this step, while small businesses will be unaffected for the time being.

West Malaysia and East Malaysia harmonised their minimum wage system on January 1, 2019, which is now RM1,100 per month. From 1 February 2020, the minimum wage in urban areas will be increased to RM1,200.

On March 19, 2022, Prime Minister Datuk Seri Ismail Sabri stated that the minimum wage would be raised to RM1,500 from May 1. Large corporations and government-linked companies will be the first to implement this step, while small businesses will be unaffected for the time being.

Malaysia’s Minimum Wage System is Making Progress

January 1, 2013: RM900 for West Malaysia, RM800 for East Malaysia

1 July 2016: RM1,000 for West Malaysia, RM920 for East Malaysia

1 January 2019: RM1,100 unified for West and East Malaysia

1 February 2020: RM1,200 in major cities

1 May 2022: RM1,500 for large companies and GLCs

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