Here's a round-up of the top HR new stories, updates and insights from the past month in Malaysia.
🔸 Malaysia's new minimum wage to take effect from 1 May 2022: What employers should note
From 1 May 2022 all employees' minimum wage was set at RM1,500. However, from 1 May to 31 December 2022, it varies for employees working in Municipal Council areas versus City Council areas.
Malaysia's Minimum Wage Order (MWO) 2022 has been gazetted. There are three segments for employers, and HR professionals to take note of - each of which will respectively take effect from 1 May 2022; from 1 May 2022 to 31 December 2022, and from 1 January 2023.
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🔸 HR Ministry: Employers with fewer than five workers given minimum wage exemption till year’s end
Employers with fewer than five workers have been exempted from the implementation of the Minimum Wage Order (PGM) 2022 until the end of the year, however, that 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 had.
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🔸 Malaysia passes bill to increase maternity leave from 60 to 98 days
Malaysia has passed an employment bill which will oversee the increase in maternity leave from 60 to 98 days, in line with the International Labour Organisation (ILO) Convention.
The bill, which was passed with a unanimous vote, would ensure women employees get enough rest and form strong bonds with their child.
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🔸 Malaysia raises paternity leave to seven days
Malaysia's Parliament has amended the Employment Act, which will extend the three-day paternity leave to seven days. Working fathers are eligible for paternity leave for up to five children. They must also have worked at the company for at least 12 months to be entitled to such leave, under the amendment that was given the nod in March. Prior to this, the private sector in Malaysia did not recognise paternity leave, with only civil servants given seven days’ paternity leave.
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🔸 Processing COVID-19 benefit claims as 'occupational disease' is in accordance with Malaysia's Employment Act
The act of processing benefit claims for COVID-19 cases as an 'occupational disease' is in accordance with Malaysia's standard operating procedures (SOP) as part of its move into the endemic phase. SOCSO added that this approach is "appropriate, and fully subject to" the Social Security Act Employees 1969 (Act 4), as well as in line with international reporting practices.
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🔸 Malaysia’s labour market momentum escalated in Q1 2022
Malaysia’s labour market momentum escalated in the first quarter of 2022 as both demand and supply ascended further.
“The flurries of socioeconomic activities continued throughout the quarter as things had practically resumed some semblance of normalcy. Therefore, the economy expanded by 5.0% in the first quarter of 2022 after posting a growth of 3.6% in the previous quarter.”
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🔸 Number of employed persons in Malaysia rises to record high
On a year-on-year basis, the number rose from 15.33 million in the same month last year. This came after more people got employed in the services, manufacturing and construction sectors in line with the country’s COVID-19 vaccine-driven resumption of economic activities, according to the Department of Statistics Malaysia (DOSM) and economists.
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🔸 Four-day work week, three-shift work days may attract locals, reduce migrant labour
A labour expert believes Malaysian employers, especially those in the manufacturing sector, should consider a four-day work week and three-shift work days to attract local workers and reduce reliance on migrants, and that the proposed shifts on working arrangements are needed to adapt to the evolving nature of the workforce.
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