HR Related Regulatory Requirements -  Minimum Wages

1.

What is the definition of minimum wages?
Minimum wages is basic wages, excluding any allowances or other payments.

2.

What is the difference between ‘wages' and ‘minimum wages'?
‘Wages' and ‘Minimum Wages' are described under section 2 of National Wages Consultative Council Act 2011. The ‘wages' has similar meaning to ‘wages' in section 2 the Employment Act 1955 or Sabah Labour Ordinance (Cap.67) and Sarawak Labour Ordinance (Cap.76) whereas the ‘minimum wages' refers to basic wages only, excluding any allowances or other payments.

3.

Who is eligible for minimum wages?
All local and foreign employees who have entered into a contract of service with an employer shall be entitled to receive minimum wages.

4. Who is not covered by minimum wages?
  • Domestic servants (e.g. maids, cooks, guards, gardeners and personal drivers).
  • Apprentices who undergo training for a period not less than two years.

5.

What is the minimum wage rate?

 

MINIMUM WAGES RATE

            (As per Guidelines on the Implementation of the Minimum Wages Order 2018 [P.U (A) 265/2018]) 

Monthly

Daily

Hourly

 

RM 1,100.00

Number of working days in a week

 

RM 5.29

6

RM 42.31

5

RM 50.77

4

RM 63.46

 

6.

When was the Minimum Wages Order enforced?
The Minimum Wages Order was first implemented on 1 January 2013 and the latest revision was on 28 November 2018.

7.

What are the penalties for offences under the Act?

Offence

Penalty

First Offence

Fine of not more than RM10,000 per employee. The court can order the employer to pay each employee the difference between minimum wages rate and the employees's basic wages.

General Penalty

Fine of not more than RM10,000 for each offence where no penalty is provided.

Penalty for Continued Offence

A daily fine of not more than RM1,000 for continuous offence after conviction.

Penalty for Repeated Offence

A fine of not more than RM20,000 or imprisonment not exceeding 5 years.

 

8. Why is there a need for a prison sentence for offences under this Act?
Prison sentences are the penalty of last resort against employers who repeatedly commits an offence.

 

 


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