Prime Minister Datuk Seri Ismail Sabri Yaakob has announced the increase in the minimum wage from RM1,200 to RM1,500 that will be in force nationwide starting 1 May 2022. The announcement was made during his closing speech at the recently concluded UMNO General Assembly. 

The Prime Minister said that the government has approved the revision to the minimum wage as it is aware of the rising cost of living that is affecting the people, especially the B40 group. “I hear the debates and concerns raised by delegates who represent the voice of the people. Therefore, I would like to announce that the minimum wage of RM1,500 a month will begin on May 1 nationwide,” he added.

Details on the implementation is light at the moment, but the Prime Minister stated that it would be first applicable to private sector companies with at least five employees. For small and micro companies, he said that Human Resources Minister Datuk Seri M Saravanan and Entrepreneur Development and Cooperatives Minister Tan Sri Noh Omar will have a discussion on delaying the implementation as the companies may not have the ability to pay the new minimum wage.

Previously, the Human Resources Minister said in a parliamentary session that the revised minimum wage of RM1,500 will be implemented within the next month or two. He added that certain sectors may be exempted from paying the new minimum wage for about two years of the policy implementation. 

The current minimum wage in cities and towns is RM1,200 per month, while the rate is slightly lower in rural areas with RM1,100 per month. The minimum salary in cities and towns was last adjusted in February 2020 with an increment of RM100, bringing the minimum wage to RM1,200 from RM1,100 per month. 

(Sources: New Straits Times, The Star)

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