KUALA LUMPUR | The minimum wage will be raised to RM1,200 starting January 2020 but will be limited to workers in major cities in the country.

Finance Minister Lim Guan Eng made the announcement when tabling the Budget 2020 here today.

Lim said this was part of a drive to modernise the labour market.

Among steps to be undertaken is the increase in maternity leave to 90 days from the current 60 days. This will start in 2021.

The Pakatan Harapan government will also make compulsory overtime pay for workers who earn RM4,000 and below.

The government said under the new Budget, it plans to extend and strengthen workers’ rights, including extending private pension coverage for contract labourers, an unprecedented move.

The policy will be limited to the entertainment industry first as a pilot project for now, but Lim said Putrajaya expects to expand this to other sectors soon.