Minimum Wages Order 2016 Takes Effect

Minimum Wages Order 2016 Takes Effect

Prior to 1 July 2016, the Minimum Wages Order 2012 [PU(A) 214/2012] made pursuant to s 23(1) of the National Wages Consultative Council Act 2011 [Act 732] provided that an employee shall be paid an average minimum wage of not less than RM900 per month in Peninsular Malaysia or RM800 per month in Sabah, Sarawak and the Federal Territory of Labuan.

Effective 1 July 2016, the Minimum Wages Order 2016 [PU(A) 116/2016] made pursuant to s 23(1) of the National Wages Consultative Council Act 2011 came into effect and revoked the Minimum Wages Order 2012. The Minimum Wages Order 2016 provides that an employee shall be paid an average minimum wage of not less than RM1,000 per month in Peninsular Malaysia or RM920 per month in Sabah, Sarawak and the Federal Territory of Labuan.

Below is a tabulation of the new minimum wages rates payable to an employee: