Malaysia to exclude some sectors from minimum wage rate mandate

These include the informal sector, companies employing less than five workers, and businesses facing huge losses because of the pandemic.
By: | April 18, 2022

Some industries will be given flexibility when Malaysia’s RM1,500 (US$355) minimum wage rate comes into effect on May 1, said Human Resources Minister Datuk Seri M Saravanan.

These include the informal sector, companies employing less than five workers, and businesses facing huge losses such as the hospitality and tourism industries, he said. 

The government would also grant a period of one year of flexibility for any party in need, which can also be extended according to the minister’s purview, he added. 

“Odd-job workers are still earning RM500 (US$118) to RM600 (US$142) salary. If I force companies to pay them RM1,500 they will soon be out of a job,” he said at a press conference, reports Malay Mail

Malaysia’s Prime Minister Datuk Seri Ismail Sabri Yaakob announced in March that the country will implement the RM1,500 minimum wage starting May 1 nationwide.

READ: Implementation of four-day workweek unlikely in Malaysia

To foster skills among citizens, the government is also aiming to offer 50,000 micro qualification training places to Malaysians by end-2022, under the Microcredential HRD Corp initiative.

Over three million micro training placements will also be offered over the next five years, said Saravanan.