Budget 2027 proposes a RM2,500 starting wage for graduates and semi-skilled workers, while GLICs and GLCs will raise their living wage benchmark to RM3,400.
PETALING JAYA: The government will introduce a starting minimum wage of RM2,500 a month for semi-skilled workers and graduates as part of efforts to reform the country’s wage framework, Finance Minister Datuk Seri Anwar Ibrahim announced when tabling Budget 2027 in the Dewan Rakyat today.
Anwar also welcomed the commitment by government-linked investment companies (GLICs) and government-linked companies (GLCs) to raise their living wage benchmark to RM3,400 a month from RM3,100, a move expected to benefit 230,000 workers.
He said the government had raised the minimum wage, introduced a minimum starting wage for semi-skilled workers and graduates, and increased civil servants’ salaries, while GLICs and GLCs had also set an example.
He added that several major employers in the banking and oil and gas sectors had introduced more reasonable wages.
“I therefore urge all private-sector employers to follow suit,” he said.
On salary payments, Anwar said companies other than micro, small and medium-sized enterprises (MSMEs) would only be eligible to claim tax deductions for salary expenses if payments were made through bank accounts using permitted channels under the Employment Act 1955.
He said the measure aimed to close loopholes that allowed employers to hire undocumented foreign workers.
The requirement would apply only to salary expenses, while tax deductions for other expenses would remain unaffected.
