Minimum Wage Order 2020

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:

• 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:

• 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• The Minimum Wages Order 2018 [U.(A) 265/2018] was revoked by the Order.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.