Malaysia's new minimum wage order postponed for companies with less than 5 staff

The new minimum wage order for this select group will now take effect on 1 July 2023.

Malaysia's Ministry of Human Resources has postponed the implementation date of the new Minimum Wage  for companies with less than five employees. This implementation will now take effect on 1 July 2023, instead of the earlier-announced 1 January 2023.

In a statement announcing this last week, Minister of Human Resources YB Tuan Sivakumar Varatharaju Naidu shared: "This decision was made after the Government took into account the views of various stakeholders who are expected to face economic and financial challenges in 2023. 

"I sincerely hope that this additional delay of six months can provide an opportunity for coordination and balance the financial needs that will help restore the economic position of companies that employ less than five employees."

That said, the the minister affirmed that employers with five or more employees, and those who carry out professional activities classified under the Malaysia Standard Classification of Occupations (regardless of the number of employees) still need to continue paying the minimum wage of RM1,500, which came into effect on 1 May 2022.

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