The Secretariat of the National Wages Consultative Council has released an FAQ document in Bahasa to clarify some common confusions. Here are some key questions I found useful, translated into English.
1. What is the definition of “minimum wage”?
Under Section 2, Act 732 (The National Wage Consultative Council Act 2011), “minimum wage” refers to basic salary. It does not include allowances, incentives, or any additional payments made to employees.
For reference, the Employment Act 1955 (First Schedule Subsection 2(1)) states that wages do not include commission, subsistence allowances, or overtime payments.
2. When does the Minimum Wage Order take effect?
• February 1, 2025: For employers with five or more employees, or those engaged in “professional activities” (regardless of employee count).
• August 1, 2025: For employers with no more than five employees.
3. What are these “professional activities”?
According MASCO 2020 (Malaysia Standard Classification of Occupations), there are nine sub-major groups classified under professional activities:
• Science & Engineering
• Health
• Teaching
• Business and Administration
• ICT (Information & Communication Technology)
• Legal
• Hospitality & Related Services
• Social & Cultural
… which basically covers almost every every professional field 🫢. However, domestic servants and apprenticeship contracts are exempt.
4. Does this apply to foreign workers too?
Oh yes, it does.
5. If I have a complaint regarding the Minimum Wage Order, where should I report it?
Jabatan Tenaga Kerja (JTK) – the labour department.
6. What are the penalties for employers who fail to comply?
• First -time offense –> Fine not exceeding RM10K per employee.
• Repeated offense –> Fine not exceeding RM20K or imprisonment up to 5 years.
I’ve also the relevant documents here so you can save them for future reference – especially if your boss asks for “evidence.”
All the best!
xoxoxo, AuntyHR
