Malaysia’s Minimum Wage Increased to RM1,700
Key Highlights
- 4.37 million workers in Malaysia will now receive a minimum monthly wage of RM1,700
- The wage increase applies to employers with five or more workers and professional sector employers, regardless of workforce size
- Businesses with fewer than five employees will have until August 1 to adjust their wage structures and operations
Background
The Malaysian government has announced the official implementation of the Minimum Wage Order, effective immediately. The new order sets the minimum monthly wage at RM1,700, up from RM1,500, for approximately 4.37 million workers across the country. This increase applies to employers with five or more workers and professional sector employers, regardless of workforce size.
Implementation Timeline
For businesses with fewer than five employees, the new rate will take effect on August 1, allowing time for necessary adjustments in wage structures and operations. Employers must comply with the new order to ensure their workers receive at least RM1,700 per month. Non-compliance is an offence under the National Wages Consultative Council Act 2011 (Act 732) and may result in penalties.
Context and Objectives
The Ministry of Human Resources (KESUMA) stated that the minimum wage adjustment is part of broader efforts to enhance worker earnings, complementing initiatives such as the Progressive Wage Policy and skills training programs to boost productivity and income levels. The aim is to ensure that workers receive fair and meaningful wages, contributing to an improved standard of living.
Clarification on Minimum Wage
KESUMA clarified that the minimum wage should not be treated as a benchmark for entry-level salaries, particularly for graduates and skilled workers, who should be paid according to their qualifications and expertise.
Alignment with Budget 2025
The wage increase aligns with Prime Minister Datuk Seri Anwar Ibrahim’s Budget 2025 announcement, aimed at economic restructuring and ensuring Malaysians earn fair and meaningful wages for an improved standard of living.
What You Need to Know
For more information on the Minimum Wage Order, the public can visit https://minimumwages.mohr.gov.my or email minimumwages@mohr.gov.my for inquiries.
Frequently Asked Questions
Q: Who is affected by the minimum wage increase?
A: Approximately 4.37 million workers in Malaysia, including those working for employers with five or more workers and professional sector employers, regardless of workforce size.
Q: When does the new rate take effect for businesses with fewer than five employees?
A: August 1, allowing time for necessary adjustments in wage structures and operations.
Q: What happens if employers do not comply with the new order?
A: Non-compliance is an offence under the National Wages Consultative Council Act 2011 (Act 732) and may result in penalties.