Following the official implementation of the Minimum Wage Order on February 1, 4.37 million workers in Malaysia will now receive a minimum monthly wage of RM1,700, up from RM1,500.
Regardless of workforce size, firms in the professional sector and those with five or more employees are subject to a wage rise.
However, the new rate will go into effect for companies with fewer than five workers on August 1, giving them time to modify their operations and wage structures as needed.
The new regulation requires employers to guarantee that their employees earn a minimum of RM1,700 every month.
According to the Ministry of Human Resources (MOHR), the minimum wage adjustment is a component of larger initiatives to improve worker earnings, which include the Progressive Wage Policy and skill-training programs to increase income levels and productivity.
The MOHR has made it clear, meanwhile, that entry-level pay should not be determined by the minimum wage, especially for skilled workers and recent graduates, who should be compensated based on their training and experience.
Prime Minister Datuk Seri Anwar Ibrahim’s Budget 2025 statement, which aims to restructure the economy and guarantee that Malaysians receive fair and meaningful salaries for an enhanced standard of living, is in line with the salary hike.
