The new (current) minimum wage of RM1,500 per month went into effect on May 1, 2022; however, firms with fewer than five employees had their original effective date postponed until January 1, 2023, to provide an adjustment time.
However, the reality is that many employers still fail to comply with the minimum wage level set for their employees. Are there legal actions that can be taken against your employer?
Here are some basic things about the minimum wage that you need to know.
The National Wage Consultation 2011 (Act 732), which sets the minimum wage rate in Malaysia, is reviewed at least once every two years.
The government carries out the minimum wage policy with several main objectives, namely:
Ensuring that the basic needs of employees and their families can be met.
Provide adequate social protection to workers.
Reduce the country’s dependence on unskilled foreign workers.
The minimum wage in Malaysia saw notable modifications as a consequence of the government’s biennial review in 2022.
The national minimum wage for private sector workers was increased to RM1,500 (≈$347) per month under the Minimum Wage Order 2022, signifying a pay rise.
The new rate went into force on January 1, 2023. The decree also specified minimum wage rates for workers who are paid hourly or daily, with RM7.21 designated as the hourly minimum wage.
Thus, these changes are intended to raise workers’ living standards and encourage equitable pay throughout the nation’s sectors.
But what if the employer fails to pay the employee below the minimum wage?
Employers who are found guilty of not paying the minimum wage to employees may be subject to the following penalties:
First Offence – Fine of not more than RM 10,000 per employee. The court may order each employee the difference between the minimum wage rate and the employee’s basic wages.
General Penalty – Fine of not more than RM 10,000 for each offence where no penalty is provided.
Penalty for Continued Offence – A daily fine of not more than RM 1,000 for continuous offence after conviction.
Penalty for Repeated Offence – A fine of not more than RM 20,000 or imprisonment not exceeding 5 years.
How to file a complaint
1. Submit a written complaint by sending an official letter to the Department of Labor (JTK) via email to jtksm@mohr.gov.my, visit the nearest local JTK office, or call 03-8000 8000. It is encouraged to attach the official letter with the application.
2. Bring copies of supporting documents such as offer letters or contracts related to employment
3. Wait for further notice from the JTK.
4. The JTK officer will contact the employer to discuss the claim made by the employee. If the employer accepts the claim and agrees to pay, then the case is considered closed, and the employee has to withdraw the claim made. However, if the employer disputes the claim, the JTK Officer will set a date to hear the employee’s case at the Labor Court.
5. Both parties are required to attend the meeting. The JTK office will issue a summons to the employer if necessary.
7. At the end of the session, the Presiding Officer will make an order orally or in writing. Any party who is not satisfied with the decision of the handling Officer can appeal to the High Court within 14 days from the date of the decision.
8. If the defendant (employer) does not appeal to the High Court and does not want to comply with the order of the Labor Court, the Labor Office will help enforce its order in the Session Court (Civil) to recover the money claimed.
This is not legal advice. Before pursuing any legal action, we always advise speaking with a lawyer.
The new (current) minimum wage of RM1,500 per month went into effect on May 1, 2022; however, firms with fewer than five employees had their original effective date postponed until January 1, 2023, to provide an adjustment time.