All employers in Malaysia must comply with RM1,700 minimum wage from 1 August 2025

This includes those hiring non-citizen workers and apprentices under contract, though domestic workers remain exempt.

The RM1,700 monthly minimum wage will be fully enforced across all businesses in Malaysia starting 1 August 2025, according to the Ministry of Human Resources (KESUMA).

This marks the end of the six-month grace period given to employers with fewer than five workers under the Minimum Wage Order (PGM) 2024. The revised rate had earlier come into effect on 1 February 2025 for companies with five or more employees, as well as for employers engaged in professional activities defined under the Malaysia Standard Classification of Occupations (MASCO) 2020.

From 1 August onwards, all employers must comply with the new minimum wage regardless of their headcount. This includes those hiring non-citizen workers and apprentices under contract, though domestic workers remain exempt.

In line with this, employers are urged to review their internal salary structures to ensure that no employee is paid less than RM1,700 in basic monthly wages. At the same time, KESUMA is calling on businesses to enhance operations by investing in employee skills development and productivity improvements.

"Employers also need to make progressive operational adjustments by focusing on increasing productivity and investing in employee skills training,” KESUMA stated.

KESUMA warned that non-compliance could result in serious penalties under the National Wage Consultative Council Act 2011 [Act 732]. Offenders may face fines of up to RM10,000 per employee. Repeat offences could see fines rising to RM20,000 or even imprisonment for up to five years.

KESUMA is also encouraging businesses to explore the Progressive Wage Policy (DGP). While voluntary, the policy rewards wage growth based on worker productivity, skills and work contribution. Participating employers may also receive targeted government incentives.

“This not only helps companies retain highly skilled workers but also strengthens their long-term competitiveness in an increasingly challenging labour market,” KESUMA shared.

Workers and employers can raise any inquiries or lodge complaints through the Department of Manpower (JTK) or visit www.minimumwages.mohr.gov.my. For more information on the DGP, employers may refer to www.gajiprogresif.gov.my.

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