Attention! The minimum salary of RM1,500 set by the government is the basic salary and does not include allowances and overtime.
The minimum salary of RM1,500 will be implemented from 1st May 2022. According to the message issued by Human Resources Minister Datuk Seri Saravanan, RM1,500 is the basic salary, excluding allowances and overtime.
The implementation of the minimum salary of RM1,500 by the government also means that the salary of employees will be increased by 25% from the original RM1,200 and 36% from RM1,100 for rural employees.
It is generally expected that with the implementation of the minimum salary of RM1,500 in May, there will be a wave of price increase in May and the price of goods may increase by 15% to 30%.
Under the 2022 minimum wage system, employers with less than 5 employees can continue to maintain the minimum wage of RM1,200 until the end of the year, while employers will be required to pay the minimum wage of RM1,500 to their employees from January 1, 2023.
