ARTICLE · 21 MAY 2021

Employment Law: Minimum Wage Being Reviewed

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In conjunction with his Labour Day address on 1 May 2021, the Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin, announced that a review of the Minimum Wages Order 2020 ("the 2020 Order")...

MalaysiaEmployment and HR

Siva Kumar Kanagasabai

Selvamalar Alagaratnam

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In conjunction with his Labour Day address on 1 May 2021, the Prime Minister of Malaysia, Tan Sri Muhyiddin Yassin, announced that a review of the Minimum Wages Order 2020 ("the 2020 Order") is being conducted.¹ The Prime Minister also called upon all stakeholders to give their proposals.

No deadline has been announced for the submission of proposals, nor has any indication been given as to when a new minimum wage may take effect.

The 2020 Order, which came into operation on 1 February 2020, introduced a two-tiered minimum wage based on the place of employment of an employee.

For an employee whose place of employment is in any of the 16 City Council areas or the 40 Municipal Council areas specified in the Schedule to the 2020 Order, the minimum wage rates are as follows-

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