Frequently Asked Questions: Minimum Wages Order 2024 in Malaysia

Understanding the Minimum Wages Order 2024 in Malaysia

The Minimum Wages Order 2024 brings significant updates to ensure fair pay for all private-sector employees in Malaysia. This blog outlines the key details you need to know, including who it applies to, when it takes effect, and where you should go if the law is violated.

What is Minimum Wage in Malaysia?

Under Section 2 of Act 732, minimum wage refers to the basic salary that employees are entitled to, excluding allowances, incentives, or additional payments. Employers must comply with this law to ensure fair treatment of their workforce.

When Does the Minimum Wages Order Take Effect?

The Minimum Wages Order 2024 will be enforced starting 1st February 2025 in the following cases:

• Employers with five or more employees.
• Employers carrying out professional activities classified under the Malaysia Standard Classification of Occupations (MASCO), regardless of employee count.

For employers with fewer than five employees and not classified under MASCO, the effective date will begin on 1st August 2025.

Who Does the Minimum Wages Order Apply To?

This order applies to all employees in the private sector, including non-citizens.

However, it excludes domestic servants and employees under apprenticeship contracts.

Is It Mandatory to Follow the Minimum Wages Order?

Yes, it is compulsory. Employers must pay at least the minimum wage even if an employee agrees to a lower amount. Non-compliance is a serious offense under Malaysian labor law.

How to Report Violations?

Employees can file complaints about Minimum Wages Order violations with:

1. Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM)
2. Jabatan Tenaga Kerja Sabah (JTK Sabah)
3. Jabatan Tenaga Kerja Sarawak (JTK Sarawak)

These agencies will take action to ensure compliance and protect workers’ rights.

Why Does the Minimum Wages Order Matter?

The Minimum Wages Order ensures that employees are fairly compensated for their work, fostering a healthier and more equitable workforce. It also helps businesses maintain compliance and avoid legal penalties.

Key Takeaways

• The MWO 2024 is effective from 1st February 2025.
• It applies to most private-sector employees, including non-citizens.
• Employers must comply or face strict penalties.
• Employees can report violations to JTKSM, JTK Sabah, or JTK Sarawak.

For more detailed information, refer the official publication here. If you need any advisory, contact us through WhatsApp or email at enquiry@mywave.biz!