The Minimum Wages Order 2024 was published on 4 December 2024, stipulating that the minimum wage of RM1,700 will be implemented effective 1 February 2025.
Please refer to the details below for a comprehensive understanding of the new Minimum Wages Order 2024 and the National Wages Consultative Council Act 2011.
The minimum wage rates payable to an employee effective 1 February 2025 are as follows:
Monthly Wage: RM1,700 per month
Daily Wage:
6-day workweek: RM65.38 per day
5-day workweek: RM78.46 per day
4-day workweek: RM98.08 per day
Hourly Wage: RM8.72 per hour
This applies to employees employed by:
Employers with five (5) or more employees.
Employers with fewer than five (5) employees but engaged in professional activities as classified under the Malaysia Standard Classification of Occupations (MASCO), as officially published by the Ministry of Human Resources.
Monthly Wage: RM1,500 per month
Daily Wage:
6-day workweek: RM57.69 per day
5-day workweek: RM69.23 per day
4-day workweek: RM86.54 per day
Hourly Wage: RM7.21 per hour
Employees not paid basic wages but compensated based only on piece rate, tonnage, task, or commission must receive a monthly wage not less than RM1,500 for this period.
This applies to employees employed by employers with fewer than five (5) employees, except those engaged in professional activities as classified under MASCO.
Monthly Wage: RM1,700 per month
Daily Wage:
6-day workweek: RM65.38 per day
5-day workweek: RM78.46 per day
4-day workweek: RM98.08 per day
Hourly Wage: RM8.72 per hour
Employees not paid basic wages but compensated based only on piece rate, tonnage, task, or commission must receive a monthly wage not less than RM1,700.
This applies to employees employed by employers with fewer than five (5) employees, except those engaged in professional activities as classified under MASCO.
"Wages" means basic wages and all other cash payments payable to an employee for work done under a contract of service. However, it does not include:
The value of accommodation, food, fuel, light, water, medical attendance, or other approved amenities/services.
Employer contributions to pension funds, provident funds, superannuation schemes, retrenchment, termination, layoff, or retirement schemes.
Any travel allowance or travel concessions.
Any sum payable for special expenses related to the nature of employment.
Any gratuity payable upon discharge or retirement.
Any annual bonus or part thereof.
If the contracted basic wages are lower than the minimum wage rates specified in the Minimum Wages Order, they must be adjusted to meet or exceed the minimum rates.
If the contracted basic wages are higher than the minimum wage rates, they must not be reduced to a lower amount.
If an offence under the National Wages Consultative Council Act 2011 is committed by:
A member of the Board of Directors,
An officer,
An employee, or
An agent of the employer, the employer is deemed to have also committed the offence.
The employer may defend themselves by proving:
The offence was committed without their knowledge, consent, or connivance.
They took all reasonable precautions and exercised due diligence to prevent the offence.
The Director General shall issue authority cards to enforcement officers.
When exercising enforcement powers, officers must produce their authority card upon request.
A Magistrate may issue a warrant if there is reasonable cause to believe:
A premise has been used or is about to be used for an offence.
Evidence related to an offence is present on the premises.
Any person who damages, tampers with, or removes sealed documents related to wage records commits an offence.
If an immediate search is required to prevent tampering, removal, or destruction of evidence, an enforcement officer may enter premises without a warrant under Section 29 of the National Wages Consultative Council Act 2011.
Employers who fail to pay the minimum wages commit an offence and may be fined up to RM10,000 per employee.
If convicted, the employer may be ordered to pay:
The difference between the actual wages paid and the minimum wage rate, including any outstanding amounts.
Other payments accrued from wage calculations based on the minimum wage rate.
Anyone who commits an offence under the Act for which no specific penalty is stated may be fined up to RM10,000.
In the case of a continuing offence, an additional daily fine of up to RM1,000 may be imposed.
For repeated offences, the penalty may be a fine of up to RM20,000 or imprisonment for up to 5 years.
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