The Minimum Wages Order 2022 (“the Order”) was gazetted on 27 April 2022. As such, minimum wage will increase from RM1,200 to RM1,500. This has come into effect of the 1st of May 2022. However, employers who have less than five (5) employees are exempted until the 1st of January 2023. This means that the minimum wage to be provided by these employers will remain at RM1,200 a month (City Council or Municipal Council area) or RM1,100 a month (other than City Council or Municipal Council area) up until the 1st of January.
The minimum wage rate has been broken down as seen below:
It should be noted that employers carrying out professional activities are not included in this exemption. As such, even if they have less than 5 employees, they will have to adhere to the RM1,500 minimum wage effective on the 1st of May. According to the Malaysia Standard Classification of Occupations (MASCO) as published by the Ministry of Human Resources, the definition of professional includes, for example, engineers, lawyers, surveyors, and medical practitioners.
Moreover, the Order is not applicable to domestic servants. For context, s2(1) of the Employment Act defines ‘domestic servant’ as a person employed in connection with the work of a private dwelling-house and not in connection with any trade, business, or profession carried on by the employer in such dwelling-house and includes a cook, house-servant, butler, child’s nurse, valet, footman, gardener, washerman or washer-woman, watchman, groom and driver or cleaner of any vehicle licensed for private use.
Lastly, with regard to employees who are not paid basic wages but are paid wages based only on piece rate, tonnage, task, trip or commission, the rate of monthly wages payable to that employee with effect from 1st of May 2022 or 1st of January 2023 shall not be less than RM1,500.
