Latest news with #MinimumWageOrder
New Straits Times
04-08-2025
- Business
- New Straits Times
Some workers take on two jobs, delay marriage to cope with living costs
KUALA LUMPUR: The minimum wage rate of RM1,700 has brought some relief to young workers, but some say it remains inadequate to cope with the rising cost of living, especially for those residing in urban areas. A report by Utusan Malaysia found that employees are being forced to make adjustments to their lifestyles to make ends meet. These include holding down two jobs, bringing packed meals to work, cooking at home, and even postponing major life plans such as marriage. Mohammad Noriman Ahmad Zarkhoni, 22, is among those feeling the pinch. He works as both a food delivery rider and a factory operator, as his RM1,500 income from delivery work alone is not enough to cover his monthly expenses. Although the dual workload is exhausting, he said he has little choice. "Time management is crucial to avoid feeling overwhelmed. So far, I'm managing. "However, I do hope there will be an improvement in the minimum wage, especially since the cost of living in the capital is much higher than in rural areas," he said. Similarly, 25-year-old Muhd Rafiq Ridzuan Zainatul Rahman said his income as a food delivery rider is not enough to save for a wedding, forcing him to delay his marriage plans. "The intention to marry is there, but since my savings are still insufficient, I've chosen to continue saving to cover the cost of the wedding ceremony in the future. "I think postponing it is the best decision for now, considering the rising cost of living. I'll need to work longer in order to save enough," he said. Thaqif Adib Marozi, 23, said he also brings his own meals to work but only has time to cook on weekends due to a packed weekday schedule. "On weekdays, I usually eat just once a day and opt for the cheapest meals available. I hope the prices of raw ingredients won't continue to rise," he said. On July 23, the Human Resources Ministry announced that the full implementation of the RM1,700 minimum monthly wage will take effect on Aug 1. It will apply to all employers, regardless of the number of employees. Failure to comply with the Minimum Wage Order under the National Wages Consultative Council Act 2011 is an offence punishable by a fine of up to RM10,000 per employee.
New Straits Times
31-07-2025
- Business
- New Straits Times
Minimum wage deadline looms, can micro businesses keep up?
KUALA LUMPUR: With barely 24 hours to go before the Minimum Wage Order takes full effect on Aug 1, pressure is mounting on micro businesses to adapt, or risk being penalised. The latest wage floor extension, which now covers firms with fewer than five employees, comes amid a cost-sensitive climate. Businesses are bracing for the expansion of the Sales and Service Tax (SST), ongoing United States tariff uncertainties and the looming fuel subsidy rationalisation. Against this backdrop, economists contacted by Business Times agree that fair pay is essential, but remain divided on how effectively micro enterprises can adapt. "It is always a tough balancing act," said Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. "Employers need to manage rising costs while ensuring employees are paid fairly. But since the minimum wage is reviewed every two years, micro firms should anticipate and prepare accordingly." Afzanizam believes survival hinges on long-term strategy and breaking away from models built on low-wage labour. "Businesses need to constantly find ways to improve their cost structure and they really need to incur capital expenditure in order to scale up," he said. "If they can do it well, they would have employees paid above the minimum wage, team players who are highly skilled and paid accordingly. That way, they do not have to worry about the changes in the minimum wage when it is due." Putra Business School economist Prof Dr Ahmed Razman Abdul Latiff agreed the pressure is real but said the policy shift is manageable. "These businesses had six months to prepare since the larger firms implemented the wage increase in February. "SST expansion will have limited impact on micro businesses, and other cost drivers like tariff changes and fuel subsidy adjustments have not kicked in yet." He added that recent monetary and fiscal measures, including the overnight policy rate cut, statutory reserve requirement easing and RM100 cash handouts, are expected to help small businesses weather the transition. "This will increase liquidity in the market and help boost revenues. It is anticipated that such increase in revenues will help to cover the incremental cost due to minimum wage and fuel subsidy rationalisation." But for economist Dr Geoffrey Williams, the debate boils down to fundamentals. "If they cannot afford to pay even these low wages then they do not have a viable business model." He argues that the moment calls for reinvention, from flexible contracts to profit-sharing and platform-based models. "These micro businesses could move from fixed salary contracts to flexible working arrangements, trading less working hours for lower pay and releasing employees to run side hustles for themselves. "They should adopt cooperative, sharing or joint incentive models. If they run a five-person company with old-fashioned business models, they won't be able to pay wages above the poverty line. "So they need to run micro-enterprises as small, agile, competitive and innovative ventures with modern business models," he added. In February, the national minimum wage was raised from RM1,500 to RM1,700, for firms with five or more employees. Smaller businesses were given until today to comply. Starting tomorrow, the new wage rule will cover all employers, regardless of size, following the end of a six-month grace period. Failure to comply is an offence under the National Wages Consultative Council Act 2011 and can result in fines of up to RM10,000 per employee, with a further RM1,000 for each day the offence continues after conviction. Meanwhile, the Department of Statistics Malaysia on Monday reported that median monthly wages in the formal sector rose 5.5 per cent to RM3,000 in March, compared to RM2,844 a year earlier. Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin attributed the increase to continued economic growth and the positive effects of the revised wage policy. Geographically, the Federal Territory of Kuala Lumpur recorded the highest median monthly wage at RM4,445 in March, followed by Selangor at RM3,300. At the other end of the spectrum, Sabah posted a median wage of RM2,000, while Kelantan and Perlis recorded the lowest at RM1,800.
Sinar Daily
22-07-2025
- Business
- Sinar Daily
RM1,700 minimum wage order to be fully enforced on Aug 1
Kesuma announced that the order will apply to employers nationwide, regardless of the number of employees hired, following the end of the six-month deferment period on July 31. 22 Jul 2025 03:13pm Photo illustrated by Sinar Daily Effective Aug 1, 2025, without exception, all employers, including those who previously benefited from the deferment period, must comply with the RM1,700 monthly minimum wage order. Photo by Bernama PUTRAJAYA - The 2024 Minimum Wage Order of RM1,700 will come into full effect from Aug 1, according to the Ministry of Human Resources (KESUMA). In today's statement, KESUMA announced that the order will apply to employers nationwide, regardless of the number of employees hired, following the end of the six-month deferment period on July 31. "Effective Aug 1, 2025, without exception, all employers, including those who previously benefited from the deferment period, must comply with the RM1,700 monthly minimum wage order. "This includes non-citizen employees and contract apprentices, but does not apply to domestic workers,' read the statement. The ministry reminded employers to review their company's wage structure to ensure no employee receives a basic salary below the stipulated minimum rate, and to progressively adjust operations by focusing on productivity enhancement and employee skills training. KESUMA also warned that failure to comply with the order is an offence under the National Wages Consultative Council Act 2011, which carries a fine of up to RM10,000 for each affected employee, with an additional penalty of RM1,000 for each day the offence continues after conviction. For repeat offences, the maximum penalty may reach RM20,000 or imprisonment for up to five years. The ministry also encouraged employers to adopt the voluntary progressive wage policy (PWP) that serves to complement the implementation of the minimum wage order. "Through the PWP, employers have the opportunity to raise employees' incomes based on productivity, skills, and work contributions, while also benefiting from targeted cash incentives provided by the government. "This not only helps companies retain highly skilled workers but also strengthens long-term competitiveness in an increasingly challenging labour market,' it added. Complaints regarding the implementation of the Minimum Wage Order can be submitted to the Department of Labour nationwide or via KESUMA's official website. Further information on the minimum wage order and the PWP can be obtained at and respectively. - BERNAMA More Like This
Malaysian Reserve
22-07-2025
- Business
- Malaysian Reserve
KESUMA: RM1,700 minimum wage order to be fully enforced on Aug 1
PUTRAJAYA — The 2024 Minimum Wage Order of RM1,700 will come into full effect from Aug 1, according to the Ministry of Human Resources (KESUMA). In today's statement, KESUMA announced that the order will apply to employers nationwide, regardless of the number of employees hired, following the end of the six-month deferment period on July 31. 'Effective Aug 1, 2025, without exception, all employers, including those who previously benefited from the deferment period, must comply with the RM1,700 monthly minimum wage order. 'This includes non-citizen employees and contract apprentices, but does not apply to domestic workers,' read the statement. The ministry reminded employers to review their company's wage structure to ensure no employee receives a basic salary below the stipulated minimum rate, and to progressively adjust operations by focusing on productivity enhancement and employee skills training. KESUMA also warned that failure to comply with the order is an offence under the National Wages Consultative Council Act 2011, which carries a fine of up to RM10,000 for each affected employee, with an additional penalty of RM1,000 for each day the offence continues after conviction. For repeat offences, the maximum penalty may reach RM20,000 or imprisonment for up to five years. The ministry also encouraged employers to adopt the voluntary progressive wage policy (PWP) that serves to complement the implementation of the minimum wage order. 'Through the PWP, employers have the opportunity to raise employees' incomes based on productivity, skills, and work contributions, while also benefiting from targeted cash incentives provided by the government. 'This not only helps companies retain highly skilled workers but also strengthens long-term competitiveness in an increasingly challenging labour market,' it added. Complaints regarding the implementation of the Minimum Wage Order can be submitted to the Department of Labour nationwide or via KESUMA's official website. Further information on the minimum wage order and the PWP can be obtained at and respectively. — BERNAMA
Barnama
22-07-2025
- Business
- Barnama
RM1,700 Minimum Wage Order To Be Fully Enforced On Aug 1
PUTRAJAYA, July 22 (Bernama) -- The 2024 Minimum Wage Order of RM1,700 will come into full effect from Aug 1, according to the Ministry of Human Resources (KESUMA). In today's statement, KESUMA announced that the order will apply to employers nationwide, regardless of the number of employees hired, following the end of the six-month deferment period on July 31. 'Effective Aug 1, 2025, without exception, all employers, including those who previously benefited from the deferment period, must comply with the RM1,700 monthly minimum wage order. 'This includes non-citizen employees and contract apprentices, but does not apply to domestic workers,' read the statement. The ministry reminded employers to review their company's wage structure to ensure no employee receives a basic salary below the stipulated minimum rate, and to progressively adjust operations by focusing on productivity enhancement and employee skills training. KESUMA also warned that failure to comply with the order is an offence under the National Wages Consultative Council Act 2011, which carries a fine of up to RM10,000 for each affected employee, with an additional penalty of RM1,000 for each day the offence continues after conviction. For repeat offences, the maximum penalty may reach RM20,000 or imprisonment for up to five years. The ministry also encouraged employers to adopt the voluntary progressive wage policy (PWP) that serves to complement the implementation of the minimum wage order. 'Through the PWP, employers have the opportunity to raise employees' incomes based on productivity, skills, and work contributions, while also benefiting from targeted cash incentives provided by the government. 'This not only helps companies retain highly skilled workers but also strengthens long-term competitiveness in an increasingly challenging labour market,' it added.
