PUTRAJAYA: The minimum wage increase from RM1,500 to RM1,700 announced in Budget 2025 is part of the government’s efforts to ensure the welfare of workers, particularly those with low incomes, while prioritising the people and elevating their dignity, says Human Resources Minister Steven Sim.
He said this initiative also offered employers the opportunity to benefit from the subsequent rise in consumer purchasing power.
“I am pleased to announce that this new rate was unanimously agreed upon by representatives of employers, workers, and the government in the National Wages Consultative Council (NWCC). The rate will be uniform across the country, regardless of region,” he said in a statement today.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2025, announced that the government had agreed to raise the minimum wage from RM1,500 per month to RM1,700 per month, effective Feb 1, 2025.
Anwar, who is also the Finance Minister, said that the enforcement of the RM1,700 minimum wage for employers with fewer than five employees would be delayed by six months, taking effect from Aug 1, 2025.
Sim added that for the first time, the Human Resources Ministry (KESUMA) would publish guidelines on starting salaries for all sectors based on the Malaysia Standard Classification of Occupations (MASCO).
“These guidelines will serve as a reference for both employees and employers in determining appropriate starting salaries for various jobs,” he said.
Meanwhile, the Malaysian Employers Federation (MEF), in a separate statement, expressed appreciation for the government’s decision to set the new minimum wage at RM1,700, acknowledging the challenges faced by micro, small, and medium enterprises (MSMEs).
Its president Datuk Dr Syed Hussain Syed Husman also thanked the government for considering the needs of MSMEs and providing a reasonable grace period for implementation, especially for micro-enterprises with fewer than five employees.
“MEF views the new minimum wage of RM1,700 as merely a starting point. Most employers already pay above the minimum wage, and MEF encourages those who can afford to pay higher salaries to do so.
“No employer should use the minimum wage as an excuse to pay only the minimum. It is both ethical and good practice for employers to remunerate their employees based on performance and business success,” he said.
