Challenges and Implications of Implementing and Enforcing Minimum Wage Orders in Malaysia and Impacts towards Employee Motivation

Abstract

With an emphasis on the context of human resource management and employee motivation, this article examines the implementation and effects of minimum wage policies in Malaysia. This review of the literature looks at several research that look into the connections between minimum wage laws, employment, income disparity, and worker motivation. The results imply that, depending on variables including labor market conditions and sector-specific dynamics, minimum wage rules may have both favorable and unfavorable effects on employment. Furthermore, the impact on employee motivation is managed and the function of human resource management in guaranteeing adherence to minimum wage laws is examined. In order to motivate workers and improve organizational performance, the article emphasizes the significance of fair and competitive salaries. In order to fully comprehend the effects of minimum wage laws, it also highlights the necessity of efficient enforcement techniques as well as the inclusion of other elements like labor market institutions and collective bargaining. The study ends by urging more investigation to properly understand the intricate connection, specific to Malaysia, between minimum salaries, employee motivation, and organizational outcomes. Overall, this article sheds light on the significance of sustainable salaries and efficient HRM techniques in fostering employee engagement and business success within the framework of Malaysia's minimum wage laws.