The government has announced the implementation of minimum wage to RM1,500 per month for certain companies effective 1 May 2022.
According to Prime Minister Datuk Seri Ismail Sabri Yaakob, the new minimum wage would initially apply to big companies and government-linked companies.
However, for micro companies with few employees and low income, there will be a discussion between human resources minister, Datuk Seri M. Saravanan and entrepreneur development and cooperatives minister, Tan Sri Noh Omar to postpone the implementation.
The prime minister made the announcement when closing the debate at the UMNO general assembly 2021 on 19 March.
Key Highlights
- Human resources minister Datuk Seri M. Saravanan added that detailed guidelines and implementation of the new monthly minimum wage would be announced soon.
- The last revision of the minimum wage was on 1 Feb, 2020 where it was increased by RM100 to RM1,200.
- The Federation of Malaysian Manufacturers (FMM) has appealed and instead suggested on gradual increments of the minimum wage to avoid impacting businesses on the overall payroll cost.
- Deputy president of the Malaysian Budget & Business Hotel Association, Sri Ganesh Michiel, said the government’s decision to increase the minimum wage will cause more harm than good and will raise operating costs.
- The hotel industry is currently recovering and the announcement could increase the price of a service or product which will then burden the consumers.
