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According to the Ministry of Human Resources (Kesuma), the new Minimum Wage Order will come into force tomorrow, requiring employers to pay a minimum wage of RM1,700 per month.
This new wage rate applies to employers with five or more employees engaged in professional activities, regardless of the number of employees the employer has. For employers with fewer than five employees, the new minimum wage order will take effect on August 1, 2025. This delay allows employers enough time to adjust salary structures and company operations accordingly.
Kesuma explained in a statement that this initiative will benefit 4.37 million workers, aligning with the nation’s Madani Economy agenda, which emphasizes social justice and the welfare of the people.
“It also aligns with the government’s commitment to ‘raise the floor’ of the nation’s economy by increasing purchasing power, which will improve the quality of life for the people,” the statement said.
Kesuma further emphasized that all employers are required to comply with the new Minimum Wage Order and ensure that their employees receive a basic salary of no less than RM1,700 per month.
Failure to comply with the Minimum Wage Order will result in fines under the National Wage Consultative Council Act 2011 (Act 732).
The implementation of the Minimum Wage Order is part of Kesuma’s broader efforts to improve workers’ income, alongside the Progressive Wage Policy and efforts to boost skills training, which are designed to increase productivity and wages.
“With effective implementation, this approach will not only enhance the welfare of workers but also contribute to the country’s economic growth,” the statement added.
For more information on the new Minimum Wage Order, the public can visit the official website at https://minimumwages.mohr.gov.my/, or employers and employees may email inquiries to minimumwages@mohr.gov.my.
In conclusion, the introduction of the RM1,700 minimum wage order marks a significant milestone for Malaysia's workforce, aiming to uplift the living standards of millions of workers while strengthening the nation’s economy. With the new policy set to take effect tomorrow for employers with five or more employees, this move aligns with the government's commitment to creating a more equitable society and improving the quality of life for all Malaysians.
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