PUTRAJAYA, October 20 — The Malaysian government has announced a minimum wage hike from RM1,500 to RM1,700 in Budget 2025, a move aimed at uplifting low-income workers and stimulating economic growth. Human Resources Minister Steven Sim emphasized that this increase, effective February 1, 2025, reflects the government’s commitment to prioritizing the welfare and dignity of workers while boosting consumer purchasing power.
The new wage, which was unanimously agreed upon by the National Wages Consultative Council (NWCC), will be implemented nationwide. However, employers with fewer than five employees will have a six-month grace period, with enforcement starting on August 1, 2025. Sim also announced the introduction of sector-based salary guidelines by KESUMA, providing a framework for fair starting wages across different industries.
The Malaysian Employers Federation (MEF) welcomed the wage increase, noting the challenges faced by micro, small, and medium enterprises (MSMEs). MEF President Datuk Dr Syed Hussain Syed Husman encouraged employers to view the RM1,700 wage as a baseline and to reward employees based on performance, acknowledging that many businesses already pay above the minimum wage.
