Summary
- Minimum wage increases from RM1,700 to RM2,000.
- More than four million workers covered.
- SMEs with annual sales below RM50 million exempted.
KUALA LUMPUR, October 9 — Malaysia’s minimum monthly wage will increase from RM1,700 to RM2,000 beginning June 2027, benefiting more than four million workers.
As the government seeks to improve household incomes and address rising living costs. Prime Minister Anwar Ibrahim announced the RM300 increase during the Budget 2027 presentation.
Although micro, small and medium enterprises with annual sales below RM50 million will be exempted to allow businesses time to adjust. The government will also introduce a starting minimum monthly salary of RM2,500.
For semi-skilled workers and graduates as part of a broader reform of the country’s wage structure. Meanwhile, government-linked investment companies and government-linked companies will increase.
Their living wage benchmark from RM3,100 to RM3,400 monthly, benefiting approximately 230,000 employees, while private employers are encouraged to follow similar practices.
