PETALING JAYA: The government has postponed the implementation of the RM1,500 minimum wage for companies employing less than five workers.
Originally set to be implemented on Jan 1, it will now come into effect on July 1, said human resources minister V Sivakumar.
“This decision was made after taking into account the views of various stakeholders who are expected to face economic and financial challenges in 2023.
“The ministry hopes that this move will be welcomed by all parties,” he said in a statement today.
Sivakumar said the postponement is expected to give companies which employ less than five people the opportunity to better balance their finances.
While the Minimum Wage Order (PMG) 2022 came into effect across all sectors on May 1 this year, an exemption was given to employers who employed less than five workers.
Sivakumar reminded employers who are not involved in the postponement to continue complying with the law.
The minimum wage was last increased in February 2020 – from RM1,100 to RM1,200 per month.