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Defnition o minimum wages

• Basic wages to be or as determined under section 23.

- S 2 o National Wages Consultative Council Act 2011

 

Minimum wages is basic wages, excluding any allowances or other

payments.- from ocial min. wages portal

http://minimumwages.mohr.gov.my/lang!en !- from ocial we"site o National #$ $esource Centre

http://www.nhrc.com.my/minimum"wages#.$u%c&e'%()* !- S 2 o %mplo&ment Act

+ages means basic wages and all other payments in cash

payable to an employee for wor done in respect of his

contract of service but does not include  -a the value of any house accommodation or the supply of

any food, fuel, light or water or medical attendance, or of anyapproved amenity or approved service-b any contribution paid by the employer on his own account

to any pension fund, provident fund, superannuation scheme,

retrenchment, termination, lay"o0 or retirement scheme, thrift

scheme or any other fund or scheme established for the

bene1t or welfare of the employee  -c any travelling allowance or the value of any traveling

concession  -d any sum payable to the employee to defray special

expenses entailed on him by the nature of his employment-e any gratuity payable on discharge or retirement or

-f any annual bonus or any part of any annual bonus

'rinciples

1. Basic wages of all employees to a minimum of M% in 4eninsular

Malaysia and M5 in 6abah, 6arawa and 7abuan respectively- S ( o )inimum Wages *r+er 2012

http://minimumwages.mohr.gov.my/?lang=enhttp://www.nhrc.com.my/minimum-wages#.Vu9cAeJ97EYhttp://www.nhrc.com.my/minimum-wages#.Vu9cAeJ97EYhttp://minimumwages.mohr.gov.my/?lang=en

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2. )mployer is re8uired by law to pay minimum wages even if employee

agrees to a lower wage than minimum wage." S 2(2! o National Wages Consultative Council Act 2011

3. 9f agreed a higher pay than minimum wages, employer cannot use the

rder as an excuse to pay employee less than the wages agreed upon

in the contract of service." S 2(,! o National Wages Consultative Council Act 2011

;. 0ence < liable to 1ne = > ? -max ? for each employee." S (, o National Wages Consultative Council Act 2011

Wo is entitle+ to minimum wages

?.  @he Minimum +ages 4olicy also applies to employees who are paid on

piece"rates, tonnage, trip" or commission"based.2. &ll local and foreign employees who have entered into a contract of

service with an employer shall be entitled to receive minimum wages.- from ocial we"site o National #$ $esource Centre

http://www.nhrc.com.my/minimum"wages#.$u%c&e'%()* !3. @he Minimum +ages rder 2?2 does not apply to apprentices -who

undergo training for a period not less than two years nor todomestic servants -e.g., maids, gardeners and personal drivers asde1ned under 6ection 2 of the )mployment &ct ?%AA &ct 2CAD,6ection 2 of the 6abah 7abour rdinance Eap. C(Dand 6ection 2 ofthe 6arawa 7abour rdinance Eap. (CD." S , o  )inimum Wages *r+er 2012

Wen to enorce

?. @he Minimum +ages rder 2?2 commenced on ? 'anuary 2?3 for

employers with more than 1ve employees, and on ? 'uly 2?3 for

employers with 1ve or fewer employees.2. Meanwhile, 6M)s will pay their foreign employees minimum wages

beginning ? 'anuary 2?;.

http://www.nhrc.com.my/minimum-wages#.Vu9cAeJ97EYhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/Act-265.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/LabourLawCap67.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/Ordinan-Buruh-Sarawak1.pdfhttp://www.nhrc.com.my/minimum-wages#.Vu9cAeJ97EYhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/Act-265.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/LabourLawCap67.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/Ordinan-Buruh-Sarawak1.pdf

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$estructuring o Wages

?. Fe1nition of restructuring of wages includes converting allowances -if

applicable into employeesG basic wages.2. )mployers have been given the opportunity to restructure employeeGs

wages before the date of implementation of the Minimum +ages rder2?2 which was ? 'anuary 2?3 -for employers with more than A

employees and ? 'uly 2?3 -for employers with A employees or less." from ocial min. wages portal

http://minimumwages.mohr.gov.my/employers/ey"information"for"

employers/ !3. Hor example:  @he travelling allowance cannot be converted into his

basic wages since travelling allowance or the value of any travelling

concession is de1ned as Inon"wagesG under 6ection 2 of the

)mployment &ct ?%AA. Hood allowance is included in the de1nition of

IwagesG under 6ection 2, thus it can be restructured." from ocial min. wages portal

http://minimumwages.mohr.gov.my/employees/scenarios/ !- S 2 o te %mplo&ment Act 1/

;. non"wages payments that are excluded in the de1nition of JwagesJ

under section 2 of the )mployment &ct ?%AA, the 6abah 7abour

rdinance Ehapter C(D or 6arawa 7abour rdinance Ehapter (CD

shall not be restructured as minimum wages.- 'oint ,iii! )eto+ * $estructuring * Wages rom

ui+elines *n 3e 4mplementation * 3e )inimum Wages

*r+er 2012A. +ages restructuring can only be done after negotiation with the

employees/ trade union.- 'oint , )eto+ * $estructuring * Wages rom ui+elines

*n 3e 4mplementation * 3e )inimum Wages *r+er 2012

http://minimumwages.mohr.gov.my/employers/key-information-for-employers/http://minimumwages.mohr.gov.my/employers/key-information-for-employers/http://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/Act-265.pdfhttp://minimumwages.mohr.gov.my/employees/scenarios/http://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/Act-265.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/imwg021012.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/imwg021012.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/imwg021012.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/imwg021012.pdfhttp://minimumwages.mohr.gov.my/employers/key-information-for-employers/http://minimumwages.mohr.gov.my/employers/key-information-for-employers/http://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/Act-265.pdfhttp://minimumwages.mohr.gov.my/employees/scenarios/http://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/Act-265.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/imwg021012.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/imwg021012.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/imwg021012.pdfhttp://minimumwages.mohr.gov.my/wp-content/uploads/2013/07/imwg021012.pdf