PUTRAJAYA: The government has decided to raise the minimum monthly wage to RM1,200 in major towns under 57 city and municipality councils, while the minimum wage remains at RM1,100 a month for the rest of the country, according to the Human Resource Ministry (MOHR).
It said the new minimum wage will take effect from Jan 1, 2020 for all employers and the order would be gazetted soon in line with the decision.
Details on the minimum wage according to hours and days as well as workers paid according to piece rate, trip, commission, tonne and task would be provided under the new minimum wage.
According to an MOHR statement, this follows the tabling of Budget 2020 and the decision of the cabinet on Dec 6 on the implementation of the RM1,200 minimum wage per month in major towns.
“The implementation of RM1,200 minimum wage in major towns and RM1,100 per month in other areas, was defined under section 2 of the Employment Act 1955 (Act 265), Sabah Labour Ordinance and Sarawak Labour Ordinance,” it said.
MOHR said the minimum wage would be applicable to all workers in the private sector except domestic service as stipulated in the Minimum Wages Order 2018.
It said the decision of the government to increase the minimum wage in major towns was to assist workers in these areas cope with the high cost of living.
Among the cities listed are Johor Baru, Iskandar Puteri, Alor Star, Malacca, Penang, Seberang Perai, Ipoh, Shah Alam, Petaling Jaya, Kuala Terengganu, North Kuching, South Kuching, Miri, Kota Kinabalu, Kuala Lumpur, while the major towns are Batu Pahat, Kluang, Kulai, Muar, Segamat, Pasir Gudang, Kulim, Sungai Petani, Langkawi, Kubang Pasu and Kota Bharu.
Also listed are Alor Gajah, Jasin, Hang Tuah Jaya, Seremban, Nilai, 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.
MOHR said the minimum wage rate would continue to be reviewed to ensure it is in line with current needs and in line with the objective of achieving a minimum wage of RM1,500 a month in first five years of Pakatan Harapan’s administration. - Bernama