The implementation of RM1.5K min. wage is delayed again.
The government has once again delayed the RM1,500 minimum wage for small businesses.
According to a statement issued by Human Resources Minister Siva Kumar, the government has decided to extend the RM1,500 minimum wage for up to six months after taking into account the various economic and financial challenges that stakeholders will face in 2023.
The government began implementing the RM1,500 minimum wage system on May 1 of this year, but employers with fewer than 5 employees were granted a half-year exemption period, which means that these small businesses can continue to pay the RM1,200 minimum wage until December 31, 2022.
Small businesses were originally required to pay a minimum wage of RM1,500 to their employees beginning January 1, 2023. However, according to the most recent government announcement, small businesses will only be required to pay a RM1,500 minimum wage beginning July 1, 2023. Employees are paid a salary.
Notice! Companies with more than 5 employees are still required to pay a RM1,500 minimum wage to their employees.
The basic salary is RM1,500 per month, which does not include allowances or overtime pay. If the employee is paid on an hourly basis, the minimum hourly wage is RM7.21 per hour. If the employee is paid on a daily basis, the daily wage for working six days per week is RM57.69, the daily wage for working five days per week is RM69.23, and the daily wage for working four days per week is RM86.54.
Any employer who violates the RM1,500 minimum wage system will be in violation of Section 43 of the National Salary Advisory Council Act 2011, and the employer will be fined up to RM10,000, with the fine based on the number of employees. Repeat offenders will face an RM20,000 fine, up to 5 years in prison, or the court may order the employer to pay the difference between the minimum wage and basic salary, as well as other expenses.
