Starting from May 1, a RM1,500 minimum wage will be implemented, enterprises with lesser than 5 employees being exempt.
From May 1, Malaysia will establish a RM1,500 minimum wage system! The new minimum wage scheme does not apply to businesses with less than five employees.
According to a message from the Minister of Human Resources, the RM1,500 minimum wage system would take effect on May 1, 2022. This minimum wage scheme applies only to organisations or firms with more than 5 employees.
This means that if a business employs fewer than five people, it is free from the RM1,500 minimum wage system.
Additionally, businesses that have suffered considerable losses are eligible for a one-year exemption. If the business of these companies has not improved after a year or if they are affected by the breakout of the epidemic, the minister will have the authority to extend the exemption term.
Some large chains, like as McDonald’s and AEON, have begun to apply the RM1,500 minimum wage scheme, according to the Human Resources Minister.
Employees would work harder after the minimum wage system is implemented, according to the government, because their pay will be proportional to the amount of effort they put in. Employers are urged to support the RM1,500 minimum wage scheme, according to the government. Raising the minimum wage will help the B40 low-income group’s economic concerns significantly.
Every two years, the government must evaluate the minimum wage system, and the most recent review occurred on February 1, 2020, when the minimum pay was raised from RM1100 to RM1200.
