On 30 September 2026, the Ministry of Labour and Vocational Training (“MLVT”) issued Prakas 226/26 on the Determination of Minimum Wage for Workers in the Garment, Textile, Footwear (“GTF”), Travel Product and Bag Sectors (“Prakas 226”), to set a new minimum wage for 2027, which will be effective from 1 January 2027.
Under Prakas 226, workers in the above sectors will be entitled to the following new minimum wage:
(1) for regular workers, USD 212 per month; and
(2) for probationary workers, USD 210 per month.
Prakas 226 also sets out the minimum wage for piece rate workers. For such workers, the pay rate is determined based on their level of production and, if such production gives rise to a higher pay rate than the minimum wage, the workers will be entitled to such higher amount. However, if their production gives rise to a pay rate lower than the minimum wage, the employer must adjust the workers’ pay such that the total pay is at least equal to the minimum wage (USD 212 for regular workers and USD 210 for probationary workers).
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