by AUFA MARDHIAH / pic BERNAMA 

THE government is postponing the implementation of the RM1,500 minimum wage for employers with fewer than five employees from Jan 1, 2023 to July 1, 2023.

The decision was made after taking into account the views of various stakeholders who are expected to face economic and financial challenges in 2023.

Previously, the Minimum Wage Order (MWO) 2022 came into effect on May 1, 2022, with a monthly minimum wage of RM1,500 for all sectors, regardless of region, for employers with five or more employees. 

On the other hand, employers with fewer than five employees were granted an exemption and the implementation of MWO 2022 amounting to RM1,500 per month would begin on Jan 1, 2023.

Human Resources Minister V Sivakumar (picture) said the six-month delay is expected to provide an opportunity to coordinate and balance financial needs, which will help restore the economic position of companies with fewer than five employees.

“Employers with five or more employees who carry out professional activities classified under the Malaysian Standard Classification of Occupation, must continue to pay the RM1,500 minimum wage beginning May 1, 2022.

“Employers who are not involved in this delay must continue to comply with MWO implementation by paying employees a minimum monthly salary of RM1,500,” he said in a statement today.