New RM1,200 minimum wage to take effect on Jan 1 in 57 towns, cities

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KUALA LUMPUR (Dec 18): The government has mandated that the new RM1,200 monthly minimum wage be implemented on Jan 1, 2020 in 57 cities and towns across Malaysia.

In releasing the list of 57 cities and towns that will be affected yesterday, (listed below), the Ministry of Human Resources (MoHR) said in a statement that the minimum wage would remain at RM1,100 a month in areas that are not considered part of these cities and towns.

"The hourly and daily minimum wage rate, as well as for workers that are paid by piece rate, commission, tonne and task, will be detailed in the new Minimum Wages Order," said the ministry.

The implementation of the minimum wage of RM1,200 a month in major urban areas, and RM1,100 a month in areas outside those, is based on their work place, which, as defined under Section 2 of the Employment Act 1955 (Act 265), the Sabah Labour Ordinance (Chapter 67) and the Sarawak Labour Ordinance (Chapter 76), is wherever work is carried out by employees for their employers.

The minimum age remains applicable for all employees in the private sector, the ministry said, except for domestic servants, as maintained in the Minimum Wages Order 2018.

The ministry noted that the decision to increase the minimum wage for workers living in these major towns is meant to help workers deal with high living costs, adding the rate will be consistently reviewed to ensure it is in line with the needs of the time.

"It is also in line with the [government's] wish to achieve a minimum wage of RM1,500 a month within the first five years of the Pakatan Harapan administration," the ministry added.

The towns and cities that will be affected by the new minimum wage:

  1. Bandaraya Johor Bahru
  2. Bandaraya Iskandar Puteri
  3. Bandaraya Alor Setar
  4. Bandaraya Melaka Bersejarah
  5. Bandaraya Pulau Pinang
  6. Bandaraya Seberang Perai
  7. Bandaraya Ipoh
  8. Bandaraya Shah Alam
  9. Bandaraya Petaling Jaya
  10. Bandaraya Kuala Terengganu
  11. Bandaraya Kuching Utara
  12. Bandaraya Kuching Selatan
  13. Bandaraya Miri
  14. Bandaraya Kota Kinabalu
  15. Bandaraya Kuala Lumpur
  16. Bandar Batu Pahat
  17. Bandar Kluang
  18. Bandar Kulai
  19. Bandar Muar
  20. Bandar Segamat
  21. Bandar Pasir Gudang
  22. Bandar Kulim
  23. Bandar Sungai Petani
  24. Bandar Langkawi
  25. Bandar Kubang Pasu
  26. Bandar Kota Bharu
  27. Bandar Alor Gajah
  28. Bandar Jasin
  29. Bandar Hang Tuah Jaya
  30. Bandar Seremban
  31. Bandar Nilai
  32. Bandar Port Dickson
  33. Bandar Jempol
  34. Bandar Kuantan
  35. Bandar Temerloh
  36. Bandar Bentong
  37. Bandar Manjung
  38. Bandar Kuala Kangsar
  39. Bandar Taiping
  40. Bandar Teluk Intan
  41. Bandar Kangar
  42. Bandar Ampang Jaya
  43. Bandar Kajang
  44. Bandar Klang
  45. Bandar Selayang
  46. Bandar Subang Jaya
  47. Bandar Sepang
  48. Bandar Kemaman
  49. Bandar Dungun
  50. Bandar Padawan
  51. Bandar Sibu
  52. Bandar Kota Samarahan
  53. Bandar Bintulu
  54. Bandar Sandakan
  55. Bandar Tawau
  56. Bandar Labuan
  57. Bandar Putrajaya