From August 1, 2025, all employers across Malaysia must start paying a minimum monthly salary of RM1700 to their workers.
This applies to every employer, no matter how many employees they have.
The new wage adjustment comes under the Minimum Wage Order 2024 and was officially announced by the Human Resources Ministry.
It had already taken effect on February 1 for companies with five or more employees and those involved in professional sectors.
Smaller businesses were given a six-month delay, which will end on July 31. After that, the rule applies to everyone.
This means starting August, all employers must follow the RM1700 minimum wage.
This also includes companies that hire foreign workers or staff on contract. However, this rule does not apply to domestic workers.
The ministry reminded all employers to check their current salary structures to make sure no employee is earning below the new minimum wage.
Employers are also encouraged to improve their business operations by focusing on staff productivity and providing proper skills training.
Those who fail to follow this rule may face serious consequences. Employers can be fined up to RM10,000 for each worker who is underpaid.
If they continue to ignore the rule, they may face extra fines or even jail time of up to five years. The authorities will not take this lightly.
At the same time, the ministry is also encouraging companies to join the Progressive Wage Policy.
This is a voluntary program that rewards workers based on their performance, skills, and contribution to the company.
Businesses that take part may also receive government incentives.
The goal is to help companies keep talented workers and stay competitive in a fast-changing job market.
