KUCHING: The Malaysian Trades Union Congress (MTUC) Sarawak Division has urged all employers and workers to understand their rights and responsibilities following two key developments in the country’s labour policy – the implementation of a RM1,700 minimum monthly wage and the amendment of the Sarawak Labour Ordinance.
Effective July 31, 2025, all workers in Malaysia are legally entitled to receive a minimum monthly wage of RM1,700 under the fully enforced Minimum Wage Order 2024.
Anchored in the National Wages Consultative Council Act 2011, the new wage floor aims to reflect the rising cost of living and ensure fair compensation across all sectors.
MTUC stressed that compliance is not optional and warned that non-compliant employers face stiff penalties.
Employers found violating this order may be fined up to RM10,000 per affected employee. If the offence continues after conviction, an additional RM1,000 per day will be imposed.
Repeat offenders risk fines of up to RM20,000 or a prison sentence of up to five years.
MTUC reminded all employees to verify their pay slips and to assert their right to a fair wage.
In addition to the wage hike, the amended Sarawak Labour Ordinance, which came into effect on May 1, 2025, now aligns more closely with the Employment Act 1955 in Peninsular Malaysia.
The amendments provide greater inclusivity and legal protection for all workers, regardless of income level.
Key improvements include the extension of maternity leave to 98 days and the introduction of seven days of paid paternity leave.
The ordinance also reduces the maximum working hours per week to 45, and introduces provisions for flexible work arrangements, anti-discrimination protections, and the requirement for safe worker accommodations.
MTUC hailed these reforms as timely and inclusive, and encouraged workers to fully understand their rights under the amended ordinance.
MTUC also issued a call to action, urging workers to report any violation of labour rights, whether related to pay, leave, working hours, or workplace treatment, to the Sarawak Labour Department, union representatives, or the MTUC Sarawak office.
MTUC believes that these labour reforms will increase worker motivation and productivity, empower employees as economic drivers, promote ethical work environments, and improve Malaysia’s image as a nation committed to progressive labour policies, ultimately enhancing investor confidence both locally and internationally.
