Please be informed that in exercising the powers conferred under subsection 23(1) of the National Wages Consultative Council Act 2011, the Minister of Human Resources has issued the Minimum Wages Order 2016 dated 27 April 2016 vide gazette notification P.U. (A) 116 dated 29 April 2016.
The Minimum Wages Order 2016 shall take effect from 1 July 2016 for all employers in the private sector irrespective of the number of employees under their employment.
Non - Application
The Minimum Wages Order 2016 shall not apply to domestic servants as defined under section 2 of the Employment Act 1955, section 2 of the Sabah Labour Ordinance and section 2 of the Sarawak Labour Ordinance.
Minimum Wages Rates
The minimum wages rates shall be as follows:-
Minimum Wages Rate for Probationers
Under the Minimum Wages Order 2016 there is no provision to reduce the minimum wages of probationers. Effective 1 July 2016, all probationers will be subjected to the minimum wages as spelt out in the Minimum Wages Order 2016.
Negotiations for Restructuring of Wages
Under the Minimum Wages Order 2016 there is no provision for negotiations on restructuring of wages. This means that any allowances now paid which is not part of the minimum wages currently in force cannot be incorporated to make up the minimum wages of RM 1,000 per month.
Rates of Wages for employee paid based only on piece rate, tonnage etc.
In relations to an employee who is not paid basic wages but is paid wages based only on piece rate, tonnage, task, trip or commission, the rate of monthly wages payable shall not be less than the following rate:-
Revocation
The Minimum Wages Order 2012 [P.U. (A) 214/2012 is revoked by the Minimum Wages Order 2016.
Source: MEF Malaysia
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