Malaysia’s Minimum Wage Increase to RM1,700 from February 2025
Introduction
Effective February 1, 2025, Malaysia will raise the national minimum wage from RM1,500 to RM1,700 per month. This increase applies to all workers in Malaysia, without discrimination based on nationality, race, or gender. This includes expatriate workers in the private sector but excludes domestic workers and those under apprenticeship contracts.
This significant change was announced by Prime Minister Datuk Seri Anwar Ibrahim during the presentation of the Budget 2025, aimed at addressing the rising cost of living and meeting the economic needs of workers across the country.
Key Highlights:
New Minimum Wage: RM1,700 (up from RM1,500)
Effective Date for Companies with 5+ Staff: February 1, 2025
Grace Period for Companies with Fewer than 5 Staff: Until August 1, 2025
Applies To: All workers in Malaysia, including expatriates in the private sector (excluding domestic workers and apprentices)
Purpose: To raise workers' living standards and address the rising cost of living
Who Does the Minimum Wage Apply To?
The new RM1,700 minimum wage applies to all sectors and workers in Malaysia, including:
Full-time and part-time employees in the private sector
Non-citizen workers (excluding domestic workers)
Employees under regular employment contracts (excluding apprenticeship roles)
What Does This Mean for Employers and Employees?
For Employers:
Companies with 5 or more employees must comply with the new wage structure starting February 1, 2025.
Companies with fewer than 5 employees have a grace period until August 1, 2025 to implement the wage increase.
Employers will need to adjust payroll systems to ensure they meet these new wage regulations and remain compliant.
For Employees:
This wage increase directly impacts the financial stability of all workers, providing better purchasing power and a higher standard of living.
Employees in full-time, part-time, and expatriate roles will benefit from this increase starting February 2025.
At HR2eazy, we remain dedicated to keeping you informed about important developments that impact the workplace. This wage adjustment is a significant step in creating a more equitable work environment for everyone.
What’s Next?
Employers should begin reviewing their compensation policies to prepare for the wage change. Employees can look forward to an improved income, ensuring greater financial security starting February 2025.
Stay tuned to HR2eazy for more updates on this and other important HR news. We’re here to support you through these changes!
