KUALA LUMPUR - The Ministry of Human Resources (Kesuma) is drafting specialized guidelines to ensure the structured implementation of the Minimum Wage Order announced in Budget 2027, specifically targeting semi-skilled workers and graduates.
Human Resources Minister Datuk Seri R. Ramanan stated that the Starting Basic Salary Guidelines, anchored on the Malaysian Standard Classification of Occupations (MASCO), will establish comprehensive benchmarks mapped to job categories and qualification levels.
"The salary guidelines for MASCO categories 1 to 3 have been determined based on the findings of the Graduate Study, following several engagement sessions," Ramanan told a press conference on the 2027 Minimum Wage Order today.
"The guidelines have also taken into account the starting basic salary recommendations under the Progressive Wage Policy (DGP), complementing the salary guidelines for MASCO categories 4 to 8," he added.
For graduate-level roles, Kesuma has proposed salary benchmarks across MASCO categories 1 to 3, covering holders of degrees, diplomas, and Level 5 Malaysian Advanced Skills Diplomas. The framework also encompasses Level 4 Malaysian Skills Diplomas and Level 3 Malaysian Skills Certificates, which will initially be rolled out as guidelines.
For semi-skilled positions, the ministry will align its approach with the Skills-Based Starting Basic Salary Guidelines, extending to Level 1 and Level 2 Malaysian Skills Certificate holders to create a complete framework across MASCO categories 1 through 8.
To strengthen enforcement, Kesuma is refining an e-wages module to monitor wage distributions directly.
"The e-wages mechanism will be proposed for application to all workers, including non-citizens," Ramanan said, adding that the system aims to enforce payment methods mandated under the Employment Act 1955 and reduce instances of delayed, unpaid, incorrect, or below-minimum salary payments.
Furthermore, Kesuma plans to table amendments to the National Wages Consultative Council Act 2011 [Act 732] to incorporate educational qualification criteria. Because the existing law lacks specific provisions for setting minimum pay based on qualifications, the legislative updates will allow the government to make graduate minimum wage rates mandatory in the future.
"Kesuma aims to publish and implement these guidelines alongside the implementation of the Minimum Wage Order in June 2027. This approach will provide employers and workers with a clearer, centralised reference for starting basic salaries according to occupation, qualifications and skills," Ramanan noted.
The initiative follows Prime Minister Datuk Seri Anwar Ibrahim’s announcement that the national minimum wage will rise from RM1,700 to RM2,000 effective June 2027, benefiting over four million workers. Micro, small, and medium enterprises (MSMEs) with annual revenue under RM50 million will receive temporary exemptions to adjust their operations.
The Prime Minister also highlighted broader income reforms, including a target starting monthly wage of RM2,500 for semi-skilled employees and tertiary graduates. - October 16, 2026
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