Only micro enterprises are exempted from implementing the Minimum Wages Order (MWO) 2022 until year-end, reminded Entrepreneur Development and Cooperatives Minister Tan Sri Noh Omar.
He said the MWO 2022 exemption was decided by the Cabinet, and while the term used is “micro, small and medium enterprises (MSMEs)”, it actually refers to micro entrepreneurs.
As Malaysia proceeds to implement the minimum wage policy effective May 1, many small enterprises reeling from pandemic woes requested for the policy to be deferred till they get back on the right footing. Taking the request into consideration, the Ministry gave these smaller business owners until year-end before they will also have to implement the new guideline.
Under the terms, any entrepreneur or firm with an annual sales turnover of below RM300,000 and employing no more than five (full-time) workers will be exempted.
The Minister also stated that if any micro-entrepreneurs should be able to afford to pay based on the minimum wage, they are strongly encouraged to do so. “We don’t want (to force) if the entrepreneurs cannot afford it, it they are just recovering and we force them to pay the minimum wage of RM1,500, I am concerned that they will feel pressured,” he added.
On Thursday, Deputy Human Resources Minister Datuk Awang Hashim said employers in the MSME group have been exempted from the implementation of MWO 2022 until the end of the year.
However, he said, employers involved in professional fields such as lawyers and doctors would still have to follow the stipulated minimum salary of RM1,500 for each employee, regardless of how many workers they have.
On April 27, the government gazetted the implementation of the minimum wage of RM1,500, which took effect on May 1, for employers who employ five or more employees as well as employers who carry out a professional activity classified under the Malaysia Standard Classification of Occupations 2020.
