news

Minimum Wage Order 2020

By January 13, 2020 July 7th, 2020 No Comments

Dear Valued Clients,

We are writing to inform that the Minimum Wage Order has been gazetted on 10 January 2020.  Attached are the said Order and the list of City Council area and Municipal Council area for your reference.

We highlight below some salient points for your attention:

  • The new minimum wage of RM 1,200 is to take effect from 1 February 2020 in major towns under 56 city and municipal councils as listed in the Order.
  • The Order shall not apply to domestic servants as defined under subsection 2(1) of the Employment Act 1955 [Act 265], subsection 2(1) of the Sabah Labour Ordinance [Chapter 67] and subsection 2(1) of the Sarawak Labour Ordinance [Chapter 76].
  • The Order provides that the minimum wages rates to an employee who works in a place of employment in any City Council or Municipal Council areas as specified in Schedule shall be as follows:

Minimum wages rates

 

Monthly

 

Daily

   

Hourly

Number of working days in week

 

6

5

4

 

RM1,200.00

RM46.15

RM55.38

RM69.23

RM5.77

  • In this Order, the “place of employment” has the meaning assigned thereto by subsection 2(1) of the Employment Act 1955, subsection 2(1) of the Sabah Labour Ordinance and subsection 2(1) of the Sarawak Labour Ordinance.
  • In relation to an employee who works in a place of employment in any City Council or Municipal Council areas as specified in the Schedule and is not paid basic wages but is paid wages based only on piece rate, tonnage, task, trip or commission, the rate of monthly wages payable to the employee shall not be less than RM1,200.00
  • The minimum wages rates payable to an employee who works in a place of employment in any areas other than the City Council or Municipal Council areas as specified in the schedule shall be as follows:

Minimum wages rates

 

Monthly

 

Daily

   

Hourly

Number of working days in week

 

6

5

4

 

RM1,100.00

RM42.31

RM50.77

RM63.46

RM5.29

  • In relation to an employee who works in a place of employment in any areas other than the City Council or Municipal Council areas as specified in the Schedule and is not paid basic wages but is paid wages based only on piece rate, tonnage, task, trip or commission, the rate of monthly wages payable to the employee shall not be less than RM1,100.00.
  • The Minimum Wages Order 2018 [U.(A) 265/2018] was revoked by the Order.
  • The following is the list of City Council and Municipal Council Area.

CITY COUNCIL AREAS

MUNICIPAL COUNCIL AREAS

1.        Johor Bahru

2.        Iskandar Puteri

3.        Alor Setar

4.        Melaka Bersejarah

5.        Pulau Pinang

6.        Seberang Perai

7.        Ipoh

8.        Shah Alam

9.        Petaling Jaya

10.      Kuala Terengganu

11.      Kuching Utara

12.      Kuching Selatan

13.      Miri

14.      Kota Kinabalu

15.      Kuala Lumpur

16.      Seremban

1.         Batu Pahat

2.         Kluang

3.         Kulai

4.         Muar

5.         Segamat

6.         Pasir Gudang

7.         Kulim

8.         Sungai Petani

9.         Langkawi

10.      Kubang Pasu

11.      Kota Bharu

12.      Alor Gajah

13.      Jasin

14.      Hang Tuah Jaya

15.      Port Dickson

16.      Jempol

17.      Kuantan

18.      Temerloh

19.      Bentong

20.      Manjung

21.      Kuala Kangsar

22.      Taiping

23.      Teluk Intan

24.      Kangar

25.      Ampang Jaya

26.      Kajang

27.      Klang

28.      Selayang

29.      Subang Jaya

30.      Sepang

31.      Kemaman

32.      Dungun

33.      Padawan

34.      Sibu

35.      Kota Samarahan

36.      Bintulu

37.      Sandakan

38.      Tawau

39.      Labuan

40.      Putrajaya