Minimum Wage Order 2016

The Minimum Wage Order 2016 (MWO 2016) which is gazette on 29th April 2016 will take into effect from 1st July 2016, replacing the Minimum Wages Order 2012. 

As highlighted in the Media Release by Ministry of Human Resources (MOHR), MWO 2016 are as follow:

a)      Cover all employers, regardless the number of employees.

 

b)      Cover all employees in private sector, except domestic servant.

 

c)      Minimum wage for Peninsular Malaysia is RM1,000 per month / RM4.81 per hour; and RM920 per month / RM4.42 per hour for Sabah, Sarawak and Labuan.

 

d)      With Maximum working hour of 48 hours per week, the daily minimum wages shall be as follow:

 

Regional areas

Minimum wages rates

Monthly

 

Daily

Hourly

 

Number of working days in a week

Peninsular Malaysia

 

RM1,000

6

RM38.46

RM4.81

5

RM46.15

4

RM57.69

Sabah, Sarawak and Federal Territory of Labuan

 

RM920

6

RM35.38

RM4.42

5

RM42.46

4

RM53.08

 

e)      For employees whose wages paid based on piece rate, tonnage, task, trip or commission, total monthly wages payable shall not be less than RM1,000 for Peninsular Malaysia or RM920 for Sabah, Sarawak and Labuan.

 

f)       With effective from 1st July 2016, clauses on Delay Application, Negotiation for Re-structure of Wages and Minimum Wages for Employees under Probation Period will be abolished.

 

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