Malaysiakini News

RM1,050 minimum wage nationwide from 2019

Published:  |  Modified:

Putrajaya has standardised the minimum wage at RM1,050 for workers in Peninsular Malaysia, Sabah, Sarawak and Labuan, the Prime Minister's Office announced today. 

The new wages, which Pakatan Harapan had pledged to standardise and increase, will take effect on Jan 1, 2019. 

The figure represents an RM50 increase from the current RM1,000 minimum wage for Peninsular Malaysia, and an RM130 increase from the RM920 in East Malaysia.  

In a statement, the PMO said the figure, which was proposed by the National Wage Consultative Council, was discussed in today's cabinet meeting. 

"The government decided for the first time agreed to implement the standardised minimum wage across the nation, including Sabah and Sarawak, at RM1,050 per month, or RM5.05 per hour. 

"The government has also decided not to provide subsidies to employers due to the financial constraints faced by the country," the statement read.

"The increment of the minimum wage is in line with the current economic situation of the country. We should be mindful that a drastic increase in salary will be problematic for industries, and affect the competitiveness of the nation.

"As such, it is appropriate to increase the salary gradually in the years ahead, especially for small businesspersons, so they will not close down their operations due to the large increase in costs," said the PMO, adding this may lead to higher unemployment and price hikes.

In their election manifesto, Harapan had said that it would increase the minimum wage to RM1,500 within five years, with the rate to be reviewed every two years thereafter.

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