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Malaysia - Minimum Wages - 2007


SOURCES


Name of Act

Employment Act, 1955 (No. 265) (Revised 1981) Malaysian Employment Legislation. CCH Asia. Singapore. 1990, pp. 50,851-52,194 Employment Act with Regulations (as amended to 1998). MDC Publishers. Kuala Lumpur. Malaysia. 1998, pp. 1-104 and Ordinance No. 38, dated 27 June 1995 as amended up to Act A1085 of 2000

Name of Act

Wages Council Act, 1947, Act 195. As revised to 1977 and Orders made in accordance with this Act.

Name of Act

Industrial Relations Act, 1967, Act 177, Government Gazette. 1976-08-12. Act Supplement as amended in 1980, Industrial Relations (Amendment) Act 1980 (No. A 484). Government Gazette. 1980-05-29. Act Supplement

LEGAL DEFINITIONS


Employee/worker

Any person in a contract with an employer, whether the contract be for manual labour, clerical work or otherwise and includes apprentices. It does not include a casual worker or someone employed other than for the purposes of the employer’s business.
Wages Council Act, 1947 2(1)

MINIMUM WAGE FIXING


Procedure


Government decides after tripartite or bipartite body discussions/recommendations

There is no national minimum wage in Malaysia. In accordance with the Wages Council Act 1947, the government may establish Wages Councils for certain non-unionized sectors of the workforce.
They are made up of government, workers’ and employers’ representatives, and not more than three independent persons.
These Councils submit Wage Regulations Proposals which the government may chose to enact in a Wage Regulation Order. Minimum wages for sectors of the workforce not covered by the rates set by the government are as decided in collective agreements between an employer or a trade union of employers on the one hand and a trade union of workmen on the other.
Wages Council Act, 1947 3(2)(a); 6(2), 12(3); and First Schedule 1

Minimum wage set through decentralized collective bargaining

Wage rates for unionized sectors of the workforce are generally determined in collective agreements. Collective agreements are binding on the parties to the agreement and members of any trade union that is a party to the agreement. The agreement extends to workers employed in the undertaking to which the agreement relates.
Industrial Relations Act 1967 17

Criteria


Other provisions

Prevailing industrial conditions, as they affect workers and employers who come within the ambit of Wage Council Orders, should be considered.
Wages Council Act, 1947 9(2)

Coverage


Scope

Wages Councils have been established for certain non-unionized sectors of the workforce not covered by collective agreements. Minimum wage rates are set for workers in one sector and three occupations: the catering and hotel sector; stevedores; cinema workers and shop assistants.

Excluded categories


» Workers

Casual workers or someone employed other than for the purposes of the employer’s business.
Wages Council Act, 1947 2(1)

Specific minimum wage rates


» Specific minimum wage by occupation

Specific minimum wage rates are set for the catering and hotel sector.
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» Specific minimum wage by sector

Minimum wage rates are set for stevedores; cinema workers and shop assistants.
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» Specific minimum wage by region

Only in the shop assistants sector. Two separate regions have been identified with rates varying accordingly.

» Minimum wage levels for specific categories of workers


» Trainees

Yes - In the shop assistants sector, specific minimum wages rates have been set for apprentices.
Wages Regulations (Shop Assistants) Order, 1970, PU (A) 97/70 as amended in 1989, Schedule (4) (1)
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» Youth

Yes - In the catering and hotel sector and shop assistants sector, minimum wage rates are set at different levels for workers aged between 14 and 16, 16 and 18 and those of 18 years of age and above.
Wages Regulation (Catering and Hotel) Order, 1967, PU 288/67, Schedule (3) and Wages Regulations (Shop Assistants) Order, 1970, PU (A) 97/70 as amended in 1989, Schedule (4) (i)
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» Disabled

Yes - If an employer or prospective employer considers a person too infirm or incapacitated to earn the statutory minimum wage, the employer may apply to the relevant Wages Council for a permit allowing them to pay the affected person at a rate that is lower than the minimum wage.
Wages Council Act, 1947, Act 195 (Revised 1977), Section 14 (1)

Level


Minimum wage level(s) in national currency

Cinema workers sector, MYR 155.00 per month for unskilled workers in cinemas normally showing 4 films per day

MYR 155.00 per month ($US 40.79 - 2004) ($PPP 86.14 - 2004)

Shop assistants sector, MYR 250.00 per month for workers aged 21 and above in certain urban districts

MYR 250.00 per month ($US 65.79 - 2004) ($PPP 138.94 - 2004)
Wages Regulation (Cinema workers) Order, 1972, as amended in 1989 Schedule (2) (i)
Wages Regulations (Shop Assistants) Order, 1970, PU (A) 97/70 as amended in 1989, Schedule 4 (i) and (ii)
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Last minimum wage update

Cinema workers and Penang stevedores, Cargo-handlers and lightermen sectors - 1989, Shop assistants sector 1982, Catering and hotel sector - 1983

In-kind allowances

No provision is made for in-kind benefits in the legislation regarding the cinema workers and Penang Stevedores, Cargo handlers and Lightermen Sectors. The Wages Regulation (Shop Assistants) Order, and Catering and Hotel Orders set forth the rates at which board and lodging can be considered as wages in lieu of payment in cash.
Wages Council Act, Article 15 (5) Wages Regulation (Shop Assistants) Order, 1970, PU A 97/70, Schedule 4 Wages Regulation (Catering and Hotel) Order, 1967, PU 288/67, Schedule (4)
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Rate of payment


» Hourly

For workers other than full-time workers in the catering and hotel sector.

» Monthly

For workers in the Cinema workers Sector, the Shop Assistants Sector and full-time workers in the Catering and Hotel Sector.

» Other

Per shift for workers in the Penang Stevedores, Cargo-Handlers and Lightermen Sector.

Scheduled frequency of adjustment

The legislation does not state how frequently minimum wage rates should be adjusted.

Enforcement mechanisms


Labour inspection

Failure to pay minimum wage rates as established by Wages Regulation Orders may result in the employer being ordered to pay the difference between the amount the worker ought to have been paid and the amount actually paid. The employer is also liable to a fine not exceeding 500 ringitt for each offence.
Wages Council Act 1947, Act 195 (Revised 1977), Section 13 (2) and Section 13 (6)

Results generated on: 23rd April 2024 at 19:55:29.

 
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