PETALING JAYA: The new minimum wage of RM1,500, which comes into effect on May 1, must not include overtime work or other allowances, unions have pointed out.
In terms of hourly rates, the minimum wage is set at RM7.21. For daily wages, it is RM57.69 (for a six-day work week), RM69.23 (five-day work week) and RM86.54 (four-day work week).
This will apply to those who employ five or more employees and for jobs classified under the Malaysia Standard Classification of Occupations (Masco) published by the Human Resources Ministry.
The new rate will also be applicable to those who are paid based on “piece rate, tonnage, task, trip or commission”, given that the employer employs five or more people.
MTUC acting president Mohd Effendy Abdul Ghani said the new rate would only be for basic salary and excludes allowances and overtime as per the previous gazette.
Therefore, he said employers cannot factor in allowances and other subsistence payments into the rate.
On Wednesday, the new order signed by Human Resources Minister Datuk Seri M. Saravanan was gazetted. This means that the previous order stipulating a minimum wage of RM1,200 has been revoked.
However, firms other than those classified under Masco and employ fewer than five staff members will be exempted from the new rate this year.
It will only be applicable to them from Jan 1, 2023.
The same applies to employers of such firms who are paid based on piece rate, tonnage, task, trip or commission.
As for those hired by employers in areas under city councils or municipal councils with fewer than five employees, the minimum wage rate will remain at RM1,200 or RM5.77 per hour, from May 1 until Dec 31, 2022.
The city council and municipal council areas here refer to those that come under the Local Government Act, Local Government Ordinance 1961 [Sabah No. 11 of 1961] or Local Authorities Ordinance 1996, as well as Putrajaya and Labuan.
The minimum wage of RM1,200 was implemented in 57 towns and councils since Feb 1, 2020.
It was increased from the previous rate of RM1,100.