BANDAR PERMAISURI, October 22 — Human Resources Minister Steven Sim Chee Keong has issued a warning to employers against using the newly announced minimum wage of RM1,700 as the baseline salary for all employees, particularly recent graduates. He clarified that this increase, effective February 1, 2025, is intended as a basic wage primarily for lower-skilled workers and those in challenging sectors, rather than a universal starting point for all job seekers.

Sim emphasized the importance of aligning salaries with individual skills, qualifications, and job roles to ensure fair compensation and retain talent in the workforce. During the announcement of the minimum wage increase in Budget 2025, Prime Minister Datuk Seri Anwar Ibrahim highlighted the need for this adjustment, which affects around 4.35 million workers currently earning below RM1,700. Sim reassured employers that the wage increase aims to bolster employees’ purchasing power, which will benefit local businesses and the economy overall.

He also urged workers to report any violations of labor laws, including minimum wage infractions, to ensure compliance and protect worker rights. The announcement coincided with the groundbreaking ceremony for the Social Security Organisation’s (Socso) Eastern Region Rehabilitation Centre, which aims to enhance worker welfare and improve productivity.