Minimum wage standardised to RM1,050 per month nationwide effective Jan 1, 2019

Cash. — DayakDaily.com file pic.// Photo: Pixabay

KUCHING, Sept 5: The federal government has set a new minimum wage of RM1,050 per month or RM5.05 per hour for workers nationwide. It will take effect on Jan 1, 2019.

In announcing this today, the Prime Minister’s Office (PMO) said in a statement that the amount was agreed to after considering the National Wage Consultative Council (MPGN) proposal during the Federal Cabinet meeting today.

The Minimum Wage Order 2016 provides a minimum wage of RM1,000 for Peninsular Malaysia and RM920 for East Malaysia.

The new wages will see an increase of RM50 and RM130, respectively.

The government has also decided not to give any subsidies to employers due to the country’s current financial constraints.


“This increase in minimum wage is in line with the current economic situation of the country. We are also aware that any drastic increase in salary will be problematic for industries, which will impact the competitiveness of the nation.

“With that in mind, minimum wage will be raised gradually in the future so that employers or smaller business organisations will not face other problems such as high operating cost, which will lead to closure of businesses and staff retrenchment,” the statement said.

Employers and traders are also urged not to raise prices of goods and services following the minimum wage hike.

The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) will be required to monitor the situation. — DayakDaily