KUALA LUMPUR (March 14): The federal government will conduct a review of the minimum wage order this year, said Human Resources Minister Steven Sim.

The move, Sim said, is in accordance with the National Wages Consultative Council Act 2011 (Act 732), which mandates the National Wages Consultative Council to review the minimum wages order at least once every two years.

"We will take into account the views of all parties, including employers and employees, and refer to socioeconomic reports such as the Bank Negara report," Sim said in Parliament during his ministry’s winding-up speech on the royal address debate.

The most recent minimum wage order, implemented on May 1, 2022, set a monthly minimum wage of RM1,500 applicable to all sectors nationwide for employers with five or more workers.

Companies with fewer than five employees were granted an exemption until Jan 1, 2023, which was later extended to July of the same year.

In November 2023, the government proposed a progressive wage policy (PWS), which was meant to complement existing policies such as the minimum wage policy and the Productivity Linked-Wage System, according to the Economy Minister Rafizi Ramli.

The PWS, which involves gradually increasing pay for workers based on their skills, experience and performance, will commence in June 2024 and involve 1,000 companies under a pilot project.