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Back Section Blog KEAP HR Minimum wage of RM1500. This minimum wage is applicable to total salary or merely basic salary itself?

Minimum wage of RM1500. This minimum wage is applicable to total salary or merely basic salary itself?

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I have driver basic salary is RM1000. But he is getting almost RM3000 per month for trip incentive and commission. Do I need to adjust his basic salary to RM1500 OR can I just maintain the current method and making sure he is getting more than RM1500 in total monthly salary?

Paragraph 4(2) of the Minimum Wages Order 2022 states that "in relation to an employee who is not paid basic wages but is paid wages based only on piece rate, tonnage, task, trip or commission, the rate of monthly wages payable to that employee with effect from 1 May 2022 shall not be less than RM1,500."

This above may be confusing because what happens if an employee is paid a basic wage (below RM1,500.00) plus trip and commission as in the above example. A verbal telephone query with one of the Labour Department revealed that they are of the view that basic wage must be RM1,500.00. If this is the view of the Labour Department and if we hold a contrary view, then I believe that this matter can only be decided by a decision from the court.

Given the response from one of the Labour Department, the matter therefore still needs further research and deliberations and at this juncture cannot be positively determined should the Labour Department takes a contrary view.