Minimum wages of RM1,500 starts tomorrow, says Sivakumar

30 Jun 2023 04:55pm
Sivakumar
Sivakumar
SHAH ALAM - The minimum wage of RM1,500 involving employers with fewer than five workers will take effect from July 1.

The enforcement under the Minimum Wage Order (PGM) 2022 would apply to all sectors, including agriculture, farming, and manufacturing, except for domestic services and apprenticeships.

The implementation of the new minimum wage was approved by the government on March 19 last year and was gazetted through the Federal Government Gazette issued by the Attorney General's Department the following month.

Due to that, the Human Resources ministry will enforce the provision for all sectors regardless of location, employers who employ five or more workers from May 2022.

However, according to the regulations, employers with fewer than five workers are granted an exemption and the implementation of the Minimum Wage Order (PGM) 2022 was suppose to take effect on Jan 1, this year.
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Minister of Human Resources V Sivakumar said the government made this decision after considering the readiness of employers to enforce the new minimum wage for their employees.

Furthermore, they also took into account the views of various stakeholders based on the anticipated economic and financial challenges that are expected to be faced in 2023.