Malaysia's new minimum wage

From 1 May 2022 (Sunday), all employees' minimum wage will be set at RM1,500. However, from 1 May to 31 December 2022, it will vary for employees working in Municipal Council areas versus City Council areas.

Malaysia's Minimum Wage Order (MWO) 2022 has been gazetted. There are three segments for employers, and HR professionals to take note of - each of which will respectively take effect from 1 May 2022; from 1 May 2022 to 31 December 2022, and from 1 January 2023. The rates (mentioned below) will now apply to Malaysia's Municipal Council and City Council areas (full list below), and must be made payable to an employee who works in a place of employment in any of them, according to Minister of Human Resources M. Saravanan.

That said, it is noteworthy that the Order is not applicable to a domestic servant - which is defined 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" - 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].

MWO from 1 May 2022

The minimum wage rates payable to an employee with effect from 1 May 2022 is as follows:

lester mwo malaysia may 2022 provided 1600x900

With regard to an employee who is not paid basic wages, but is paid wages based only on piece rate, tonnage, task, trip or commission, Minister Saravanan said that the rate of monthly wages payable to that employee with effect from 1 May 2022 shall also not be less than RM1,500.

For this segment of MWO, professionals can take note that the Order is applicable to an employee employed by:

  • An employer who employs five or more employees, and
  • An employer who - regardless of the number of employees employed - carries out a professional activity classified under the Malaysia Standard Classification of Occupations (MASCO) as published officially by the Ministry of Human Resources.

MWO from 1 May 2022 to 31 December 2022

The minimum wage rates payable to an employee according to the place of employment area for the period from 1 May 2022 to 31 December 2022 is as follows:

lester mwo malaysia may to dec 2022 provided 1600x900

In relation to an employee who is not paid basic wages but is paid wages based only on piece rate, tonnage, task, trip or commission the rate of monthly wages payable to that employee according to the place of employment area for the period from 1 May 2022 to 31 December 2022, the Minister said that it must likewise not be less than:

  • For City Council or Municipal Council area: RM1,200
  • For outside City Council or Municipal Council area: RM1,100

Similarly, this Order is applicable to the aforementioned group of employees-employers.

MWO from 1 January 2023

The minimum wage rates payable to an employee with effect from 1 January 2023 is as follows:

lester mwo malaysia jan 2023 provided 1600x900

Regarding an employee who is not paid basic wages, but is paid wages based only on piece rate, tonnage, task, trip or commission, the rate of monthly wages payable to that employee with effect from 1 January 2023, Minister Saravanan reminded that it must - as with the other segments of MWO - not be less than RM1,500, and that the Order is applicable to the aforementioned group of employees-employers.


City Council areas

Johor Bahru, Iskandar Puteri, Alor Setar, Melaka Bersejarah, Pulau Pinang, Seberang Perai, Ipoh, Shah Alam, Petaling Jaya, Kuala Terengganu, Kuching Utara, Kuching Selatan, Miri, Kota Kinabalu, Kuala Lumpur, and Seremban.

Municipal Council areas

Batu Pahat, Kluang, Kulai, Muar, Segamat, Pasir Gudang, Kulim, Sungai Petani, Langkawi, Kubang Pasu, Kota Bharu, Alor Gajah, Jasin, Hang Tuah Jaya, Port Dickson, Jempol, Kuantan, Temerloh, Bentong, Manjung, Kuala Kangsar, Taiping, Teluk Intan, Kangar, Ampang Jaya, Kajang, Klang, Selayang, Subang Jaya, Sepang, Kemaman, Dungun, Padawan, Sibu, Kota Samarahan, Bintulu, Sandakan, Tawau, Labuan, and Putrajaya.


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Image / Malaysia's Federal Government Gazette

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