New RM1,700 Minimum Wage Goes Into Effect

As of today (1 February 2025), the new minimum monthly wage of RM1,700 goes into effect. This is a RM200 increase from the previous RM1,500 minimum wage, and is set to affect around 4.37 million workers in Malaysia.

This wage increase applies to employers with five or more workers and professional sector employers, regardless of workforce size.

Businesses with less than 5 employees have until  1 August to comply

For businesses with less than five employees, some leeway has been given. The minimum wage for these businesses will instead go into effect on 1 August 2025, allowing for some time to make the necessary adjustments in wage structure and operations.

Employers must comply with the new minimum wage and ensure that their workers receive at least the stated RM1,700 per month.

The Ministry of Human Resources (KESUMA) also stated that the minimum wage adjustment is part of a broader effort to enhance worker earnings, complementing initiatives such as the Progressive Wage Policy and skills training programmes to boost productivity and income levels.

Non-compliance is an offence

Failure to comply will be considered an offence under the National Wages Consultative Council Act 2011 (Act 732) and may result in penalties. 

However, KESUMA has made it known that the minimum wage should not be treated as a benchmark for entry-level salaries. Skilled workers and graduates should still be paid according to their skills, qualifications, and experience.

The wage increase aligns with the Budget 2025 announcement from back in October 2024, which was aimed at economic restructuring and ensuring that Malaysians earn fair and meaningful wages for an overall better standard of living.