For many workers, payday brings a sense of relief—finally, the chance to cover bills, buy groceries, or maybe even save a little.
But when wages barely stretch far enough, that relief quickly turns into stress.
To help ease this burden, the Malaysian government has officially increased the minimum wage from RM1,500 to RM1,700, a move expected to benefit 4.37 million workers nationwide.
Who gets the pay raise?
Not all companies have to implement this new wage right away.
The Ministry of Human Resources (KESUMA) clarified that the increase applies to employers with at least five workers and those engaged in professional activities, regardless of their workforce size, reported Berita Harian.
For smaller businesses with fewer than five employees, there’s a bit more time to adjust—the new rate only kicks in on August 1, 2025.
This grace period is meant to help these businesses adapt their salary structures and manage costs before the rule becomes mandatory.
Why the RM1,700 minimum wage matters
This increase isn’t just about numbers—it’s about fair pay and financial stability.
The government introduced this wage hike as part of the MADANI Economy agenda, which focuses on ensuring social justice and improving people’s quality of life.
Higher wages mean more spending power for workers, which in turn boosts local businesses and strengthens the economy.
The government is also framing this as part of its ‘Raising the Floor’ initiative—ensuring that wages keep up with the rising cost of living and helping Malaysians feel more financially secure.
What happens if employers don’t follow the rule?
While the wage increase is good news for workers, it also comes with strict enforcement.
Employers who fail to comply could face legal action under the National Wages Consultative Council Act 2011 (Act 732).
To help ensure fair pay, KESUMA has set up complaint and monitoring channels through agencies like the Department of Labour of Peninsular Malaysia (JTKSM), the Sabah Department of Labour, and the Sarawak Department of Labour.
These platforms allow workers to report issues if they’re not receiving the new minimum wage.
At the same time, the ministry is working with various agencies to provide guidance and support to businesses that need to adjust their salary structures.
Beyond the minimum wage—Fair pay for everyone
While RM1,700 is now the baseline, KESUMA stresses that this shouldn’t be seen as the standard for all jobs—especially for fresh graduates or skilled workers.
Employers are expected to offer salaries that reflect experience and qualifications, rather than just sticking to the minimum.
