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Govt To Enforce RM1,700 Minimum Wage Policy Effective Aug 1
Govt To Enforce RM1,700 Minimum Wage Policy Effective Aug 1

BusinessToday

time22-07-2025

  • Business
  • BusinessToday

Govt To Enforce RM1,700 Minimum Wage Policy Effective Aug 1

The government will enforce the RM1,700 monthly minimum wage across all employers nationwide, regardless of company size, starting Aug 1, 2025. This marks the end of the six-month grace period previously granted to employers with fewer than five workers. The new rate, introduced under Budget 2025 and implemented in February for larger companies and professional sectors under MASCO 2020, will now apply to all employers, including those hiring non-citizens and contract apprentices. Only domestic workers remain excluded. The Ministry of Human Resources reminded employers that failure to comply with the Minimum Wage Order 2024 constitutes an offence under the National Wages Consultative Council Act 2011. Violators risk fines up to RM10,000 per worker, daily penalties of RM1,000 for continued non-compliance, and up to RM20,000 or five years' jail for repeat offences. Employers are urged to revise salary structures and align operations towards greater productivity and skills development. The ministry also encouraged participation in the voluntary Progressive Wage Policy, which ties pay increases to performance and offers targeted cash incentives from the government. Related

Hajiji: Good labour laws key to Sabah's economic growth
Hajiji: Good labour laws key to Sabah's economic growth

The Star

time13-05-2025

  • Business
  • The Star

Hajiji: Good labour laws key to Sabah's economic growth

KOTA KINABALU: Labour laws should be seen as a tool to create a fair and productive work environment, not as a burden, says Chief Minister Datuk Seri Hajiji Noor ( pic ). "When workers are protected and valued, productivity improves and the economy flourishes. That is the philosophy we aim to instil through the Sabah Labour Advisory Council (SLAC). "The labour laws are not a burden on employers, they are a mechanism for sustaining harmony in the workplace," he said, adding that the newly launched SLAC is set to protect workers' rights and foster stronger collaboration between the state government, employers, and employees. He stated this in his speech, delivered by State Science, Technology and Innovation Minister Datuk Dr Ariffin Arif, at the council's appointment ceremony and inaugural meeting at Shangri-La Tanjung Aru Resort on Tuesday (May 13). SLAC, he explained, will serve as a platform for employers and employees to exchange views and propose improvements on labour-related matters, allowing Sabah to craft policies more suited to its unique industrial landscape. Comprising 48 permanent members, with 16 each representing the government, employers' associations, and workers' unions, the council's structure mirrors the International Labour Organisation's (ILO) Tripartite Consultation Convention (No. 144) of 1976. "All decisions made by SLAC will be submitted to both the state and federal governments for further action," he added. Hajiji said SLAC would also strengthen cooperation between the state and federal governments, particularly through the Ministry of Science, Technology and Innovation and the Ministry of Human Resources. He also welcomed the Federal Government's move to raise the national minimum wage from RM1,500 to RM1,700 under the Minimum Wage Order 2024, saying every worker deserves to be paid in accordance with their contributions. Citing the Prime Minister's Labour Day announcement, he described it as a turning point for labour administration in Sabah, especially with plans to address forced labour, workplace discrimination, sexual harassment, housing, protection for women and children, and improved working conditions. A stable and well-regulated labour system, he said, is essential for drawing investments and strengthening Sabah's economic foundation. To support the Sabah Labour Ordinance (Amendment) 2025, the state government will continue engaging all stakeholders. "I urge all employers and industry players to support this initiative and fulfil their responsibilities with a strong sense of patriotism," he said. Hajiji also praised the Sabah Labour Department for helping resolve over RM22.2mil worth of claims involving 13,487 workers last year through inspections and labour court action. He stressed the importance of worker safety, social protection through EPF, Socso, and the Employment Insurance System, and the need to uphold freedom of expression and trade union participation. "The Decent Work Agenda must not remain a slogan – it must be embedded in our policies, practices, and actions. In Sabah, we strive to balance economic progress with the well-being of our people," he said.

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