New RM1,700 Minimum Wage Takes Effect Today

KUALA LUMPUR, Feb 1 (Bernama) -- A total of 4.37 million workers in Malaysia will now receive a minimum monthly wage of RM1,700, up from RM1,500, following the official implementation of the Minimum Wage Order today.

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

However, 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.

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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.

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 programmes to boost productivity and income levels.

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However, KESUMA also 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.

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.

For more details on the Minimum Wage Order, the public can visit https://minimumwages.mohr.gov.my or email to minimumwages@mohr.gov.my for inquiries.

-- BERNAMA