Higher minimum wage nationwide from Jan 1 2019

KUALA LUMPUR: Effective January 1 2019, the minimum wage nationwide — including Sabah and Sarawak — will be RM1,050 per month or RM5.05 per hour, the Prime Minister’s Office announced today.

The Minimum Wage Order 2016 had provided for minimum wage rates of RM1,000 a month for Peninsular Malaysia and RM920 a month for Sabah, Sarawak and Labuan.

In a statement, PMO said the Cabinet decided to standardise minimum wage nationwide after considering recommendations from the National Salary Consulstative Council’s (MPGN) review of the Minimum Wage Order 2016.

“The Government also decided not to give any subsidies to employers due to the country’s current financial constraints. This increase in minimum wage is in line with the current economic situation of the country,” it said.

The statement said any drastic increase in salaries would create other problems for industries and could jeopardise the nation’s competitiveness. As a result, minimum wage would be raised gradually in the coming years so that employers do not close down their businesses due to high operating costs that would lead to employee retrenchment.

“Employers and traders are also urged not to raise prices of goods and services following this minimum wage increase. The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) is tasked to monitor the matter,” it added. © New Straits Times Press (M) Bhd