Minimum wage of RM1,700 also applies to foreign workers, says National Wages Consultative Council

KUALA LUMPUR: The minimum wage of RM1,700, which will take effect from February 2025, will also apply to foreign workers in the private sector except for domestic workers and those under apprenticeship contracts.

According to frequently asked questions (FAQ) on the order prepared by the National Wages Consultative Council Secretariat, the minimum wage policy must not discriminate against any worker on the grounds of nationality in line with the ILO Equal Remuneration Convention (No. 100), which Malaysia ratified in 1997.

Furthermore, Section 69F of the Employment Act, Section 118B of the Sabah Labour Ordinance and Section 119B of the Sarawak Labour Ordinance prohibit any form of discrimination between local and foreign workers.

"Employers are required to pay the minimum wage rate to employees, even if the employee agrees to be paid a basic wage lower than the minimum wage, in accordance with Section 43 of the National Wages Consultative Council Act 2011 (Act 732)," it said.

Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2025 on Friday (Oct 18), announced that the government had agreed to raise the minimum wage from RM1,500 to RM1,700 per month, effective Feb 1, 2025.

Anwar, who is also Finance Minister, said the government had decided to delay the implementation of the RM1,700 minimum wage for employers with fewer than five employees by six months until Aug 1, 2025.

It added that the Minimum Wage Order of RM1,700 applies to employers with five or more employees, as well as employers engaged in professional activities regardless of the number of employees.

According to the Malaysian Standard Classification of Occupations 2020, there are nine major sub-groups of professional activities: science and engineering professionals, health professionals, teaching professionals, business and administration professionals, as well as information and communication technology (ICT) professionals.

Others are legal professionals, hospitality and related services professionals, social and cultural professionals, and regulatory body professionals.

It said employees who are not paid a basic salary but are paid wages based on piece rates, tonnage, task rates, travel, or commission must receive a monthly wage that is no less than the current minimum monthly wage of RM1,700.

According to the FAQ, the implementation of the order does not conflict with employers who adopt the Productivity-Linked Wage System (PLWS), provided that employees do not receive less than the minimum wage rate.

Additionally, the Minimum Wage Order will not be replaced by the Progressive Wage Policy, as that policy complements the minimum wage and is implemented voluntarily by employers.

With the gazetting of the 2024 Minimum Wage Order, the 2022 order is revoked, but any legal proceedings, prosecutions, or investigations initiated under the 2022 order will continue until completed.

"All service contracts and collective agreements must take into account all provisions in the 2024 order," according to the FAQ.

The Minimum Work Order is enforced by the Department of Labour Peninsular Malaysia (JTKSM), the Department of Labour of Sabah, and the Department of Labour of Sarawak, and any violations can be reported to the relevant authorities.

Employers who fail to comply with the order may face penalties ranging from RM1,000 to RM20,000, or imprisonment for up to five years. – Bernama

https://www.thestar.com.my/news/nation/2024...ltative-council

Bangla thanks BMX

All working foreigners can get minimum pay RM1.7K soon.

Abuden, you expect bangla to undercut locals by RM200?

This.

honestly, some bangla workers are more hardworking than locals lol

Would rather pay foreigner than uitm graduates

Workers unite.

More banglas and rohingyas queueing up to work here soon.

Don't know why BMX don't go see why earth princes don't want to work these kind of jobs and climb their way up. Oh yeah cause they have tongkat, who wants to go through hard work.

Many bisnes will either reduce workforce or close shop.

if like this, get ready to see my roti telur and nescafe ice rm10-12

Hope 20k soon

TAUKE : Apa susah, pass cost down to consumer je

2025 kopitiam jiken lice - RM15

Jiken lice sellers all T15, no more RON95 subsidies, they all drive Allfart/Hellfire to procure the jikens and lices, so need to increase more prices.

sohai. like that might as well give citizenship.

bangala vote for PMX!!

Sayang sgt pmx…

Syukur Bangla now can dating awek and get citizenship soon

MYR is stonk.
Foreign workers very happy to remit more to overseas.

Of course apply to foreigner also.
Else all employ foreigner only.
You think government so stupid donno what game the employers want to play.