RM1,050 minimum wage nationwide from January 1 next year

PUTRAJAYA: The government will implement a standardised new minimum wage of RM1,050 a month or RM5.05 per hour nationwide – including Sabah and Sarawak – from Jan 1 next year, the Prime Minister’s Office (PMO) announced yesterday.

PMO in a statement said that the decision was made after considering the recommendations f rom the Nat iona l Wages Consultative Council ( MPGN) on the review of the Minimum Wages Order 2016.

The Minimum Wages Order 2 016 provides a minimum wage of RM1,000 per month for Peninsular Malaysia and RM920 per month for Sabah, Sarawak and the Federal Territory of Labuan.

“The government also decided not to give any subsidies to employers due to the current economic situation of the country,” it said.

The statement also explained that the increase in the minimum wage was in line with the current economic situat ion of the country.

“We must be aware that any drastic increase in salary will cause other problems to the industry which could also jeopardise the country’s competitiveness,” the statement said.

Hence, it would be more appropriate i f the minimum wage to be raised periodically in the coming years so that the industries, especially the small and medium enterprise owners, would not have to close down their businesses due to high operating cost that would lead to retrenchment, it said.

“Employers and traders are also urged not to raise the prices of goods and services following the introduction of the new minimum wage and the Ministry of Domestic Trade and Consumer Affairs is urged to monitor the situation,” it said.