Budget 2027 raises the minimum wage to RM2,000 from June 2027, with initiatives to improve gig workers’ incomes, skills and social protection.
PETALING JAYA: Budget 2027 initiatives to raise wages, strengthen social protection and develop industry-relevant skills are expected to improve household incomes and create better career opportunities for Malaysians, said Human Resources Minister Datuk Seri R. Ramanan.
He said the Human Resources Ministry (Kesuma) would provide further details in the coming days on the implementation mechanism for the proposed RM2,500 monthly minimum wage for semi-skilled workers and graduates.
“I welcome this step to ensure wages are more commensurate with workers’ qualifications and skills,” he said in a statement today.
The government will also raise the national minimum wage to RM2,000 a month from June 2027, benefiting more than four million workers, while government-linked investment companies and government-linked companies will increase their living wage benchmark to RM3,400.
Ramanan urged private sector employers to follow suit by offering fairer wages in line with workers’ productivity and contributions.
On gig workers, he said a RM160 million joint funding package by the government and Grab, beginning in 2027, would support higher net incomes and improve workers’ welfare through assistance for vehicle maintenance, insurance and social security contributions.
Median net monthly income for e-hailing drivers is expected to increase by up to RM227, while p-hailing delivery riders could see an increase of up to RM100.
He said the Gig Consultative Council was negotiating minimum income rates, income calculation formulas and minimum social protection standards, with details expected to be finalised in early 2027.
“Income determination must take into account working hours and the actual costs of carrying out tasks to ensure gig workers receive fairer and more sustainable net incomes,” he said.
On skills development, Ramanan said the RM8 billion allocation for technical and vocational education and training (TVET) across ministries would support efforts to equip workers with skills relevant to industry needs.
The initiatives also include training for 8,000 Malaysians in elderly care and an expansion of the TalentCorp-led Bakat Madani programme to create 30,000 new job opportunities in 2027.
The allocation for the Malaysian Indian Community Transformation Unit (MITRA) will also increase to RM150 million, with a focus on skills training and employment opportunities for Indian youths.
Separately, the government will fully cover Social Security Organisation (Perkeso) contributions for 40,000 religious workers through Tabung Haji.
Ramanan said effective implementation of the initiatives was crucial to ensuring workers benefited from better wages, relevant skills and stronger social protection.
“I am confident that the effective implementation of Budget Madani 2027 initiatives will improve household incomes and open up better career opportunities for the people,” he said.
