Partial commencement of Malaysia’s Minimum Wages Order 2022 from 1 May 2022

30 May 2022

On 27 April 2022, the Minimum Wages Order 2022 (“Order”) was gazetted. The Order revokes the Minimum Wages Order 2020 (“2020 Order”). The Order does not apply to a domestic servant as defined under section 2(1) of the Employment Act 1955, section 2(1) of the Sabah Labour Ordinance and section 2(1) of the Sarawak Labour Ordinance.

The Order comes into operation in three phases.

Increase in minimum wages from 1 May 2022

With effect from 1 May 2022, paragraph 4 of the Order provides that the minimum wage rates payable to an employee employed by:

• an employer who employs five or more employees; and 
• regardless of the number of employees employed, an employer who carries out a professional activity classified under the Malaysian Standard Classification of Occupations (“MASCO”) as published officially by the Ministry of Human Resources (“MASCO Employer”),

is as follows:

(“New Minimum Wages Rate”).

Paragraph 4(2) provides that 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 with effect from 1 May 2022 shall not be less than RM1,500.

Increase in minimum wages from 1 January 2023

In respect of employees employed by an employer who employs less than five employees other than a MASCO Employer, the New Minimum Wages Rate will only commence from 1 January 2023.

Similarly as item 1 above, 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 shall not be less than RM1,500.

Minimum wages from 1 May 2022 to 31 December 2022

Paragraph 6 of the Order provides that, from 1 May 2022 to 31 December 2022, the minimum wages rates payable to an employee employed by an employer who employs less than five employees other than a MASCO Employer will be maintained at the previous minimum wage rates as provided in the 2020 Order. As such, the minimum wages rates payable to an employee is in accordance to the place of employment area, a summary of which is included below:

For 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 from 1 May 2022 to 31 December 2022 shall not be less than the following rates: