Increase in minimum wage for employers with less than five employees deferred

The Minister of Human Resources, V Sivakumar, announced yesterday that the implementation of the increase in minimum wages of employees from RM1,200 to RM1,500 per month for employers who employ less than five employees has been deferred from 1 January 2023 to 1 July 2023.1
The increase in monthly wages of employees from RM1,200 to RM1,500 for employers who (i) employ five or more employees, or (ii) carry out a professional activity classified under the Malaysia Standard Classification of Occupations (MASCO)2 regardless of the number of employees employed, had been implemented since 1 May 2022.
The amendments to give effect to the abovementioned deferment are set out in the Minimum Wages (Amendment) (No.2) Order 20223 that was gazetted on 28 December 2022. 
The deferment of the increase in minimum monthly wage is intended to reduce the expenses for smaller businesses. However, it will be a bitter blow to affected employees who are already struggling to cope with the soaring increase in the cost of living in the country, especially in light of the fact that many other employees have already had an increase in their monthly minimum wages since 1 May 2022.
Our Alert of 28 April 2022 on the implementation of the minimum wages can be read here.  
Alert by Siva Kumar Kanagasabai (Partner) of the Employment Law Practice of Skrine.
1 Minimum wage for small firms put off till July, Star Online, 27 December 2022; Breathing space for small firms, The Star, 28 December 2022; and Minimum Wages (Amendment) (No.2) Order 2022.
3 P.U.(A) 400/2022.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact