New Minimum Wages Order effective 1 May 2022...Employers with less than 5 employees exempted.

Minimum Wages Order 2022 was gazetted on 27 Apr 2022. Minimum wages increase to RM1,500 from 1 May 2022. There is a temporary exemption for employers with less than 5 employees until 31 December 2022 (not applicable to the professional service industry).

01Key salient points from the Order as below :

1）On 27 April 2022, the Minister, in the exercise of the powers conferred by section 23 of the National Wages Consultative Council Act 2011 [Act 732], Gazette the Minimum Wages Order 2022 [P.U. (A) 140].

2）This Order shall not apply to a domestic servant as defined under subsection 2(1) of the Employment Act 1955 [Act 265], subsection 2(1) of the Sabah Labour Ordinance [Cap. 67] and subsection 2(1) of the Sarawak Labour Ordinance [Cap. 76].

3）The Minimum Wage of RM 1,500 will come into effect on 1 May 2022 for the following two types of employers.:-

a) an employer who employs five or more employees; and

b) regardless of the number of employees employed, an employer who carries out a professional activity is classified under the Malaysia Standard Classification of Occupations (MASCO) as published officially by the Ministry of Human Resources.

4.1) If the employee is paid on a daily basis, the Minimum Wage will be as follows:-

a) 6 working days in a week - RM 57.69 per day

b) 5 days in a week - RM 69.23 per day

c) 4 working days in a week - RM 86.54 a day

4.2) if the employee is paid on an hourly basis, the wage is not less than RM 7.21 per hour

5.1) For employers employing less than 5 employees, the Minimum Wage of RM 1,500 will come into effect on 1 January 2023

5.2) For Employer with less than 5 employees that do not carry out a professional activity classified under the Malaysia Standard Classification of Occupations (MASCO), the Minimum Wage will be as per the Previous Order until 31 December 2022, i.e.

a) Place of employment is in the City Council or Municipal Council area - RM 1,200

b) Place of employment is located at Other than City Council or Municipal Council area - RM 1,100

6. In addition to the Minimum Wages Order 2022 [P.U.(A) 140/2022], we have also compiled a list of past Minimum Wage Orders and the Malaysian Standard Classification of Occupations.

02The Malaysian Standard Classification of Occupations.

1) The Malaysia Standard Classification of Occupations (MASCO) is a national benchmark for the classification of occupations in the employment structure of the country.

MASCO has been developed in accordance with the International Standard Classification of Occupations (ISCO) with changes and modifications to meet the needs of the country.

MASCO lists down the descriptions and tasks as well as the code for each position listed.

It contains ten categories of major groups, namely:

• Major Group 1: Managers
• Major Group 2: Professionals
• Major Group 3: Technicians and Associate Professionals
• Major Group 4: Clerical Support Workers
• Major Group 5: Service and Sales Workers
• Major Group 6: Skilled Agricultural, Forestry, Livestock, and Fishery Workers
• Major Group 7: Craft and Related Trades Workers
• Major Group 8: Plant and Machine Operators and Assemblers
• Major Group 9: Elementary Occupations
• Major Group 0: Armed Forces

03Source :

CCS & Co blog dated 28 Apr 2022

The Minimum Wage is officially RM1,500 from May 1 | 5月1日起最低工资RM1,500

https://bit.ly/3EXuw6Y

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