Malaysia Minimum Wages Increase to RM1,700！
During Budget 2025, Prime Minister Anwar Ibrahim announced that effective from 1 February 2025, the monthly minimum wage will be increased from RM1500 to RM1,700.
The National Wages Consultative Council has released the Frequently Asked Questions (FAQ) document regarding the Minimum Wages Order.
FAQ of Minimum Wages Order:
According to Section 2 of National Wages Consultative Council Act 2011 (Act 732), minimum wages refer to basic wages, excluding incentives, allowances and other payments.
Effective from 1 February 2025
- Employer with five employees and above
- Employers who carry out professional activities classified under the Malaysia Standard Classification of Occupations (MASCO)
Effective from 1 August 2025
- Employer with less than five employees
- The RM1700 minimum wage rates will apply to all employers.
Minimum Wage
- Monthly: RM1,700
- Daily: RM65.38（6 working days），RM78.46（5 working days），RM98.08（4 working days）
- Hourly: RM8.72
No, even the employee agree to work for less than the minimum wage.
- Apply to all employees in the private sector, including foreign workers
- It does not apply to domestic worker and apprenticeship contract
According to Section 69F of the Employment Act 1955, Section 118B of the Sabah Labour Ordinance (Chapter 67), and Section 119B of the Sarawak Labour Ordinance (Chapter 76), the government prohibits any form of discrimination between local and foreign workers.
The 2022 Minimum Wages Order will be revoked, and all service contracts and agreements must comply with the terms of the 2024 Minimum Wages Order.
No, the progressive wage policy is a complement to the minimum wage and is implemented at the discretion of the employer.
Employees can file a report with the Ministry of Human Resources.
Fine of not less than RM1,000 and not more than RM20,000 or imprisonment not exceeding 5 years.
(201706002678 & AF 002133)