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MALAYSIA: Government Imposes New Minimum Wage Rates with Immediate Effect

New minimum wage rates have been implemented in Malaysia from 1 July[1]. The monthly minimum wage is now set at RM1,000(about US$250) in Peninsular Malaysia[2], and RM920(US$230) in the states of Sabah and Sarawak, and in the Federal Territory of Labuan.

Employers who do not comply with the new rates will be liable for a fine of up to RM10,000(US$2,500) with any continuing offence subject to a daily penalty of RM1,000 (US$250). Employers identified as repeat offenders will face fines of up to RM20,000(US$,5000) or five years imprisonment or both.




[1] Minimum Wages Order 2016
[2] Peninsular Malaysia comprises of the states of Perlis, Kedah, Penang, Perak, Kelantan, Terengganu, Pahang, Negeri Sembilan, Malacca, Johor and Selangor, and the federal territories of Kuala Lumpur and Putrajaya.

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