Malaysia plans to raise the minimum wage to RM2,000 from June 2027, benefiting over four million workers, while strengthening local hiring and gig worker protections
KUALA LUMPUR: The Ministry of Human Resources (KESUMA) continues to prioritise Malaysians in the job market, in line with the government’s plan to raise the minimum wage to RM2,000 per month starting June 2027 for workers covered by the policy.
Human Resources Minister Datuk Seri R. Ramanan said employers must prioritise recruiting local workers through the MyFutureJobs portal before hiring foreign workers, supporting efforts to reduce reliance on imported labour.
He said the minimum wage hike will benefit over four million workers, while micro, small, and medium enterprises (MSMEs) with sales revenue below RM50 million are exempted.
“For MSMEs with sales revenue below RM50 million, we need to give them time to adjust,” he said when winding up the debate on the Supply Bill 2027 at the policy stage for his ministry in the Dewan Rakyat today.
According to Ramanan, the government will implement the wage increase in phases for the specified MSME group, taking business capability into account and ensuring workers receive compensation commensurate with their skills and qualifications.
On the proposal to differentiate minimum wage rates between local and foreign workers, he said the matter needs a holistic examination, particularly on domestic legal implications and international conventions.
At the same time, he emphasised that the recruitment of foreign workers is currently restricted to six main sectors and permitted sub-sectors, with strict criteria and approval conditions.
On the gig economy sector, Ramanan said the government will finalise the income calculation mechanism and protection standards for these workers by early 2027, transparently, equitably, and honourably.
He said the minimum income rate formula was based on a comprehensive study involving 13 engagement sessions, 14 focus group discussions, 37 in-depth interviews with 1,962 platform workers, analysis of 487,805 service transactions, and benchmarking across 42 countries.
“These findings will be translated into a minimum income rate formula that considers income adjustments such as inflation, Poverty Line Income (PGK), Basic Expenses for Decent Living (PAKW), median wage, minimum wage, and household income, as well as operational costs such as vehicle insurance, road tax, and maintenance costs,” he said.
On the welfare of e-hailing and p-hailing riders, Ramanan told the Dewan Rakyat that the government has established a special financial support initiative worth RM160 million through a collaboration between KESUMA and the Ministry of Finance.
“Out of this RM160 million, half will be borne by the government and the other half will be borne by the platform companies themselves, where currently we are using Grab as a pilot project,” he said.
Regarding Social Security Organisation (PERKESO) contribution deductions for gig workers registered on multiple platforms, he said companies do not deduct them separately but coordinate them under a single integrated account to avoid double deductions.
