Minimum wage set

Prime Minister Datuk Seri Najib Tun Razak announced, on 30th April 2012, the introduction of Malaysia’s first minimum wage that will cover employees in all sectors excluding those employed as domestic help.

For Peninsular Malaysia, the minimum wage has been set at RM900.00 while that in East Malaysia and Labuan is RM800.00

The rates will take effect six months from the date the Minimum Wage Order (Perintah Gaji Minimum) is gazetted.

Businesses with five employees or less will have an additional six months to implement the minimum wage rule.

The additional grace period will however not apply to professional firms.

Update

Minimum wages have since been revised to RM1,000.00 for Peninsular Malaysia and RM920.00 for East Malaysia.

TerritoryMonthlyHourlyDaily
Number of days worked in a week
654
Peninsular MalaysiaRM1,000.00RM4.81RM38.46RM46.15RM57.69
Sabah, Sarawak and LabuanRM920.00RM4.42RM35.38RM42.46RM53.08

Minimum wage refers to the basic wage and excludes any allowances, etc.

The minimum wage rule applies to all local and foreign employees who have entered into a contract of service with an employer, but excludes domestic servants (e.g. maids, cooks, guards, gardeners and personal drivers), as well as apprentices undergoing training for a period of not less than two years.

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