KUALA LUMPUR: Malaysia has officially increased the minimum monthly wage to RM1,700, up from RM1,500, benefiting 4.37 million workers. The Minimum Wage Order takes effect on February 1 for companies with five or more employees and professional sector employers, regardless of workforce size.
Smaller businesses with fewer than five workers have until August 1 to comply, allowing time for financial adjustments.
The Human Resources Ministry stressed that the new wage is a basic threshold and not a benchmark for entry-level salaries of graduates and skilled workers, who should be paid based on qualifications.
Failure to comply is an offence under Act 732 and may lead to legal penalties. The move aims to improve living standards while balancing business sustainability.
