PETALING JAYA: The government has agreed to increase the minimum wage from RM1,700 currently to RM2,000, effective June 2027, says Datuk Seri Anwar Ibrahim.
While tabling Budget 2027 in the Dewan Rakyat on Friday (Oct 9), the Prime Minister said micro, small and medium enterprises (SMEs) with annual sales below RM50mil would be exempted from the new rate to allow them time to adjust their business models.
He said the new minimum wage would cover more than four million workers.
Anwar, who is also Finance Minister, said the government would also introduce a minimum monthly wage of RM2,500 for semi-skilled workers and graduates as part of reforms to the workers’ income framework.
He said employee compensation accounted for 33.9% of Malaysia’s gross domestic product (GDP), adding that workers’ incomes had not kept pace with rising prices and the cost of living.
Meanwhile, Anwar said government-linked investment companies (GLICs) and government-linked companies (GLCs) had committed to raising their living wage benchmark to RM3,400 per month, from RM3,100, benefiting 230,000 workers.
“The government has raised the minimum wage, established a minimum wage for semi-skilled workers and gra
He also urged private-sector employers to follow suit, noting that the government had raised civil servants’ salaries and that major employers in the banking and oil and gas sectors had introduced higher wage levels.
