Minimum Wage Malaysia 2023: Median Salary By Labour Law

What Is The Minimum Wage Malaysia 2023 by min and median salary labour law malaysia

minimum wage malaysia 2023

What Is A Good Wage In Malaysia? Around seven (7) million workers serve in the public and private sectors in Malaysia, including foreign workers. This salary issue has a different impact on two parties: the employer and the employee. This median salary malaysia increase turns out to be a burden on employers, as the company’s expenditure costs will rise and have an impact on their businesses.

While, for the workers, it is a good thing because this slight increase can help reduce the financial burden faced by workers with increasing economic challenges caused by inflation and recession.

Nevertheless, the increase in the minimum salary in malaysia 2023 of RM1,500 is still considered irrelevant due to the significant improvement in living standards. It’s still considered insufficient for the family and the single to live a decent life.

Therefore, this minimum wages in Malaysia scale still needs to be increased gradually from time to time. The salary that is considered good is RM4,000, which is relevant to the current level of Malaysia’s economy and can reduce the poverty gap amongst societies.

What Is The Minimum Wage Malaysia 2023 By Labour Law

The malaysia minimum wage 2023 is the wage given by the employer at the minimum level, regardless of the employment sector, and is implemented by the government for all workers in Malaysia.

It covers all fields, gender, type of job, and level of employees’ academic qualifications.

The government, with the agreement of the Malaysian Trades Union Congress (MTUC) and the Congress of the Union of Employees in the Public and Civil Services Malaysia (CUEPACS), agreed to set the minimum wage for workers in Malaysia at RM1,500.

This minimum salary in Malaysia will come into force on May 1, 2023. The implementation of the new minimum wage was approved by the government on March 19, 2022, and announced through the Federal Government Declaration issued by the Department of Public Prosecutors on April 27, 2022.

The rising standard of living has resulted in this median salary malaysia level being raised from RM1,200 to RM1,500.

The government believes that this minimum wage Malaysia 2023 should be raised because of the challenging economic situation.

Therefore, the government is raising these wage rates gradually to avoid employers being impressed by these increases, which could lead to uncontrolled production cost increases and job retention.

Employers may be subject to legal action if they fail to pay workers the minimum wage as established by the government, as pursuant to Labour law Malaysia 2023, Section 2 of the Labor Act 1955 (Act 265), the Sabah Labor Ordinance (Bab 67), and also for the state of Sarawak, the Sarawak Labor Ordinances (Bab 76).

What Is The Minimum Wage Malaysia 2023 Per Hour

The Minimum Wages Order 2022, which will come into effect on January 1, 2023, has set out that the minimum wage Malaysia 2023 per hour is RM7.21.

It is applicable for workers who work on an hourly basis.

SOURCE: MOHR

Are Malaysian Workers Still Paid Below Minimum Wages Malaysia 2023

Realistically, the RM1500 salary is still considered irrelevant to cover living costs today, especially for people living in urban areas.

Increases in the price of goods, daily expenses, bills, rental costs, and so on must be taken into account in this minimum wage setting.

Nevertheless, there are still many more employers who do not comply with the nation’s orders related to this median salary malaysia increase. Some of them are afraid that their business will suffer a loss caused by rising workers’ wages Malaysia costs.

It is ridiculous for society, especially those who already have families, to receive a salary less than the minimum wage in malaysia, which is RM1500.

Complaints to the MTUC and CUEPACS are necessary to ensure that workers’ rights are protected and upheld so that they do not burden their workers.

Why Malaysian Workers Are Underpaid To Get Living

According to the Department of Statistics Malaysia, statistics show that 15.3% of workers in Malaysia still receive salaries below the established min wage levels.

This percentage was recorded in 2023, after this min wage malaysia was imposed.

There are many factors by which employers still underpay Malaysian workers below the minimum wage malaysia, some of which are caused by the employer who is stingy in the company.

They take into account all the costs that their companies need to bear without taking any consideration of today’s economic burden faced by their employees. Not only that, they assume that employing workers over the minimum salary in malaysia 2023 does not affect their productivity.

Other than that, workers are too comfortable working and receiving wages Malaysia like that. So, employers take advantage of the comfort of workers without considering the burden that their workers bear.

Finally, the skill that the workers possess is mismatched by the skill required by industry and companies. Therefore, employers choose to pay salaries below the minimum wages malaysia 2023.

Employers think it’s not worth paying a worker who doesn’t bring positive growth to the company.

Rising the basic salary in malaysia 2023 level is crucial to increasing productivity and the value of an employee’s work, which will lead to a more successful company.