Malaysian government to reassess minimum wage in 2024: HR Minister

The federal government of Malaysia will conduct a review of the minimum wage order in 2024 as announced by Human Resources Minister, Steven Sim in the Dewan Rakyat on March 14.

This corresponds with the National Wages Consultative Council Act 2011 (Act 732), which requires the National Wages Consultative Council to conduct a review of the minimum wage order at least once every two years.

Enforced on May 1, 2022, the latest minimum wage decree established a monthly minimum wage of RM1,500, which applies to all sectors across the country for employers with five or more employees.

The review process will involve soliciting input from various stakeholders, including employers and employees, and consulting socioeconomic reports such as the Bank Negara Malaysia (BNM) report.

Additional Information:

• The Malaysian Trades Union Congress (MTUC) urged the government to increase the minimum wage following a recent 2% rise in the service tax. 
• Small companies with less than five employees were initially exempt until January 1, 2023, a deadline later extended to July of the same year. 
• In November 2023, a progressive wage policy (PWS) was introduced by the Economy Minister as a complement to existing policies, aiming to gradually raise wages based on workers’ skills, experience, and performance, set to begin in June 2024 with 1,000 companies participating in a pilot program.