Jun 30, 2016

No More Delays: Minimum Wage Policy To Come Into Effect Tomorrow

No More Delays: Minimum Wage Policy To Come Into Effect Tomorrow


KUALA LUMPUR: The minimum wage policy will come into effect tomorrow, without any further delays.

Human Resources Minister Datuk Seri Richard Riot Jaem, in a statement today, said the new minimum wage rates had been announced by Prime Minister Datuk Seri Najib Razak during the tabling of the 2016 Budget, last year. 

"The ministry stresses that the Minimum Wage Order 2016 gazetted on April 29, 2016, will come to effect July 1 (tomorrow), without any further delays.

"Therefore, claims that employers face time constraints to implement the new rate starting July 1, is baseless.

"Claims that the country's economic position was not good is also false, as proven in several indicators, such as the labour productivity growth in 2015 rose to RM75,538 from RM73,091 in 2014," he said.

The Minimum Wage Order stipulates that employees in Peninsular Malaysia are to be paid a minimum of RM1,000 a month, while employees in Sabah, Sarawak and the Federal Territory of Labuan are to be paid a minimum of RM920 a month.

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