KUALA LUMPUR: Some 4.37 million workers will benefit from the implementation of the minimum wage order of RM1,700 per month effective today.
The Human Resources Ministry in a statement, said the implementation will take effect nationwide from Feb 1, setting the minimum wage at RM1,700 per month for employers with five or more employees, as well as for employers engaged in professional activities, regardless of the number of employees they hire.
As for employers with fewer than five employees, the effective date will begin on Aug 1, 2025. This is to ensure that employers are given sufficient time to adjust their salary structures and company operations accordingly.
“This initiative will benefit 4.37 million workers in line with the Ekonomi Madani agenda, which emphasises social justice and the people’s well-being to ensure sustainable and inclusive economic growth.
“It also aligns with the government’s commitment to ‘Raising the Standard’ of the national economy by increasing purchasing power, ultimately improving the quality of life for the people,” it said in a statement yesterday.
The ministry also said that all employers are obliged to implement and adhere to the ruling and to ensure that their workers receive a basic salary not lower than RM1,700 monthly.
Employers who fail to comply with this ruling will be considered to have committed an offence and may face a fine in accordance with the National Wages Consultative Council Act 2011 (Act 732).To ensure a smooth transition, the ministry has introduced several support initiatives for employers and employees.
Employers have participated in 16 engagement sessions nationwide to better understand the implementation of the minimum wage order, with 1,109 participants including employer associations, industry representatives, trade unions and worker representatives, government agencies, and international experts such as the International Labour Organisation.A complaint and monitoring channel has also been established for employees facing non-compliance issues through the Peninsular Malaysia Labour Department, the Sabah Labour Department and the Sarawak Labour Department, as well as collaboration with relevant agencies to provide guidance and assistance to companies that require salary structure adjustments.
The ministry also emphasised that the minimum wage should not be used as a starting salary benchmark for all employees, particularly graduates, and that workers should be fairly compensated based on their abilities.
It said the implementation of the minimum wage order is one of the ministry’s key approaches to increasing workers’ income, alongside the progressive wage policy and efforts to enhance skills training as a means to improve productivity and wages.
With effective implementation, these initiatives would not only enhance workers’ well-being but also contribute to the country’s economic growth.
The ministry also calls on all employers, employees and industry stakeholders to collaborate in ensuring the successful implementation of the minimum wage order.
Members of the public who wish to know more about the order can visit the relevant website at https://minimumwages.mohr.gov.my/.
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