UPDATED:
DELIMITER $$
CREATE TRIGGER updateWage BEFORE UPDATE ON st_penalty
FOR EACH ROW BEGIN
IF DAY({fw NOW( ) } ) = 1 THEN
UPDATE st_penalty SET st_penalty.wage = (SELECT wage FROM staff WHERE staff.memId = st_penalty.memId);
END IF;
END$$
The error is #1064 - You have an error in your SQL syntax; check the manual that corresponds to your MySQL server version for the right syntax to use near '' at line 6.