PETALING JAYA: The RM1,700 minimum wage will be fully implemented from Aug 1, says the Human Resources Ministry.
It said in a statement on Tuesday (July 22) that this would come into effect for all employers nationwide, regardless of the number of employees.
“This new rate was announced in Budget 2025 and began implementation on 1 February 2025 for employers with five or more employees and for employers engaged in professional activities under the Malaysia Standard Classification of Occupations (Masco) 2020,” it added.
The ministry said that for employers with fewer than five employees, a six-month deferment period was granted which ends on July 31.
“From 1 August 2025, all employers without exception must comply with the minimum wage order of RM1,700 per month including those who previously enjoyed the deferment period,” it added.
The ministry then said that while this applies to non-citizen workers and contract apprentices but does not apply to domestic workers.
“All employers are required to adhere to this minimum rate to ensure that workers' rights are protected in accordance with the prevailing laws,” it then said.
The ministry also said that all employers must review their company's salary structure to ensure no employee receives a basic salary below the set minimum rate.
“Additionally, employers should progressively adjust operations, focusing on enhancing productivity and investing in employee skills training,” it added.
It said that failing to comply with the Minimum Wage Order is an offence under the National Wages Consultative Council Act 2011.
“If convicted, employers may be fined up to RM10,000 per employee, with an additional fine of RM1,000 for each day the offence continues after conviction.
For repeat offences, the maximum fine can reach RM20,000 or imprisonment for up to five years,” said the ministry.
It then said that it encourages employers to take advantage of the Progressive Wage Policy (PWP), which is voluntary and complements the implementation of the minimum wage.
The ministry then said that through the Policy, employers have the opportunity to increase employee income based on productivity, skills, and work contributions while enjoying targeted cash incentives from the government.
“This not only helps companies retain highly skilled employees but also strengthens long-term competitiveness in an increasingly challenging labour market,”
It then said that any inquiries or complaints regarding the implementation of the Minimum Wage Order can be directed to the Department of Labour (JTK) nationwide or through the ministry’s official website.
“For more information on the implementation of the minimum wage, please visit www.minimumwages.mohr.gov.my. To understand the potential and participation in the Progressive Wage Policy, employers can visit www.gajiprogresif.gov.my,” said the ministry.
