Malaysia's HR Ministry looking to review the Minimum Wage Order 2022: Minister Sivakumar

The implementation of this review, the Minister said, is important to ensure that the adjustment of the Minimum Wage Order is based on evidence and facts.

Malaysian Minister of Human Resources V Sivakumar has shared that the Ministry of Human Resources will be reviewing the minimum wage order through the National Wage Consultation Council (MPGN). 

This study is conducted at least every two years, in accordance with the provisions of Section 25 of the National Wage Consultation Council Act 2011 [Act 732].

As affirmed by Minister Sivakumar, the implementation of this review is important to ensure that the adjustment of the Minimum Wage Order is based on evidence and facts. This study uses empirical methods through the collection of primary data through field studies, and findings from this primary data analysis serve as the primary input for evaluating the minimum wage rate.

Up until 31 October 2023, the Peninsula, Sabah, and Sarawak Department of Labor conducted 53,287 inspections of employers from various sectors. Of that number, 857 employers were found not to comply with the Minimum Wage Order 2022, and a compliance notice was issued to them.

From May 1, 2022, to September 30, 2023, the Peninsular, Sabah, and Sarawak Department of Labor received 3,884 complaints about employers not complying with the Minimum Wage Order 2022.

Based on inspections and complaints, the Peninsular, Sabah, and Sarawak Manpower Departments have opened 1,280 investigations. A total of 113 prosecutions were carried out against employers who failed to pay wages in accordance with the Minimum Wage Order 2022, with a total fine of RM262,100.00

Minister Sivakumar said “The government has always given priority to wage restructuring, particularly through the implementation of the Minimum Wage Order.

“Periodic evaluation of the minimum wage rate is done based on the country's economic growth scenario and changes in the cost of living of the people.” he added.

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