Minimum Wage

Malaysia ratifies the Minimum Wage Fixing Convention, 1970 (No. 131)

Malaysia is the 53rd member State to have ratified this important Convention.

News | 07 June 2016
On 7 June 2016, the Government of Malaysia deposited with the International Labour Office the instrument of ratification of the Minimum Wage Fixing Convention, 1970 (No. 131). Malaysia is the 53rd member State to have ratified this important Convention.

As emphasized in the Preamble of Convention No. 131, minimum wage fixing is intended to protect wage earners against unduly low wages. It gives effect to the principle, set out in the Declaration of Philadelphia of 1944 that “labour is not a commodity”. Convention No. 131 also provides that the price of labour cannot be determined purely and simply through the application of the rules of supply and demand and that minimum wage is to be provided to all employed and in need for such protection.

In depositing the instrument of ratification, H.E. Richard Riot JAEM, Minister of Human Resources of Malaysia, stated: “As of now Malaysia had ratified a total of 17 ILO Conventions. In an ongoing effort to provide better protection for the workers, Malaysia has decided to ratify ILO Convention No 131: Minimum Wage Fixing Convention this year. With this ratification Malaysia becomes the first country in ASEAN and the 53rd country in the World to ratify this convention and we will strive to comply with all the articles stipulated in this convention. Malaysia truly hopes that this ratification would propel Malaysia’s efforts to adhere to international labour standards, especially in providing greater labour protection for workers. Malaysia looks forward to any technical and advisory assistance from ILO so as to ensure a smoother implementation of the provisions of this Convention.”

In receiving the instrument of ratification, Mr Guy Ryder, Director-General of the ILO, stated: “I welcome the ratification of Convention n°131 by Malaysia, the 5th Asian state to have ratified this important instrument together with Japan, Korea, Nepal and Sri Lanka. Convention n°131 sets out a number of essential principles regarding minimum wage fixing, while offering flexibility to member States in their implementation. Mindful of the efforts undertaken by Malaysia for the ratification of this Convention, I encourage the Government and the social partners to work together towards its full implementation. I also encourage other countries which have not yet ratified the Convention to follow the example of Malaysia.”

Convention n°131 will enter into force for Malaysia on 7 June 2017, that is, one year after its ratification.