| Summary: | This study explores the effect of the newly introduced National Minimum Wage (NMW) on the productivity of Malaysian hotel employees based on the insight of several domains which include the analysis of government policy, literature reviews, fieldwork and stakeholder views. The fieldwork includes an extensive employee quantitative survey research to explore their responses to the potential impact of the NMW on their productivity. The findings of this study highlighted the understanding of the productivity concept based on the employees' understanding and perspective. Based on the findings of this research, in terms of productivity, it is clear that the employees are ready to respond positively to the changes in their work pattern provided wages are increased. This study makes a significant contribution towards assisting the key players in the hotel industry (policy makers, hotel associations, trade unions, employers, and employees) to develop a more strategic and effective approach to the implementation of the NMW. (C) 2016. The Authors. Published for AMER ABRA by e-International Publishing House, Ltd.
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