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THE 2024 Minimum Wage Order (PGM), setting the monthly minimum wage at RM1,700, will come into full force nationwide from 1 August, the Ministry of Human Resources (KESUMA) announced today.
The order, which had been subject to a six-month deferment for certain employers, will soon apply to all employers throughout the country, regardless of the number of employees hired.
“From 1 August, all employers without exception, including those previously granted the postponement period, must comply with the minimum wage order of RM1,700 per month,” KESUMA said in a statement.
“This includes non-citizen workers and contract apprentices, although domestic service providers are excluded.”
The ministry urged all employers to review their wage structures to ensure no worker is paid below the statutory minimum. KESUMA also encouraged companies to begin progressive operational adjustments, placing emphasis on productivity gains and workforce skills training.
Non-compliance with the Minimum Wage Order constitutes an offence under the National Wages Consultative Council Act 2011.
Employers found guilty may face fines of up to RM10,000 per employee, with an additional RM1,000 per day for continued violations after conviction. Repeat offenders risk a maximum fine of RM20,000 or imprisonment for up to five years.
In parallel, KESUMA is also promoting voluntary adoption of the Progressive Wage Policy (Dasar Gaji Progresif, DGP) as a complementary framework to the minimum wage.
“Through the DGP, employers have the opportunity to raise worker earnings based on productivity, skills and job performance, while also receiving targeted government cash incentives,” the ministry said.
“This not only helps companies retain skilled workers, but also strengthens long-term competitiveness in an increasingly demanding labour market.”
Complaints relating to the Minimum Wage Order may be lodged with the Department of Labour (JTK) nationwide or via the official Ministry of Human Resources website.
Details on the Progressive Wage Policy can be accessed at [www.gajiprogresif.gov.my](http://www.gajiprogresif.gov.my). - July 22, 2025