Minimum wage can be defining as the minimum amount of salary that an employer for the work performed during a given period. Started from 2013, Malaysia implemented the minimum wage policy, according to National Wage Consultative Council (2012), the government has set a minimum wage of RM900 per month for employees in West Malaysia and RM800 for East Malaysia.
But in 18 December 2019, the government has mandated that the new RM1,200 monthly minimum wage be implemented on Jan 1, 2020 in 57 cities and towns across Malaysia. The objective of minimum wages legislation is to protect low wage workers that able to discover their living cost. Nowadays, living cost is increase time to time if no the policy the wage and the living cost will not balance and will cause the poverty. Besides that, this policy will decrease unemployment rate and increase productivity to assumes that the workers will have motivation to work because will have the remain wages and they will not think in an unfavorable situation. It also enhances the inventiveness for the unemployment to accept jobs.
For new minimum wage policy has been gazette and will officially encircle 56 city and city council from 1 February 2020.On 10 January 2020, the Human Resources Ministry released the gazette under Minimum Wages Order 2020. The minimum wage rate payable to an employee will regarding the listed areas which an hour will be pay RM1,200 monthly. Beside which areas not in the listed areas will be pay RM1,100 monthly.
Last but not least, the minimum wage has their pros and cons which can balance the lower wage workers with the living cost. We know that the living cost was increase time to time, so the government need to reduce the burden for low wage worker. However, fewer hiring will occur because some of the business will think that they must pay minimum wage to worker, they will unable to afford it. But the minimum wage policy is let us understand that every worker must be pay the fair salary with their effort.
