The
Minimum Wages Order 2020 [P.U.(A) 5/2020] (“
the Principal Order”) came into effect on 1 February 2020, introducing a two-tiered minimum wage based on whether the place of employment of an employee is located within or outside the City Council or Municipal Council areas set out in the Schedule to the Principal Order. Our Alert on the Principal Order can be accessed
here.
Recently, the
Minimum Wages (Amendment) Order 2022 [P.U.(A) 14/2022] (“
the Amendment Order”) was gazetted on 20 January 2022 and will come into operation on
1 February 2022. Pursuant to the Amendment Order:
Comments
When the Amendment Order takes effect on 1 February 2022, the minimum wage rates will no longer depend on whether or not an employee’s place of employment is located in the 56 areas set out in the Schedule to Principal Order, but whether the place of employment is located in an area that has been or is hereafter declared or established as a City Council or Municipal Council area under the local government legislation set out in the definition of “City Council or Municipal Council areas” in paragraph 3 of the Principal Order.
This change will introduce uniformity of wage rates to all areas that have been or are hereafter accorded the status of a City Council or Municipal Council.
Alert by Foo Siew Li, Partner in the Employment Practice of Skrine.