Special system will ensure compliance with new policy
PETALING JAYA: When the new RM2,000 minimum wage kicks in next year, the government will launch the e-Wages system to monitor its implementation.
The system will feature a live dashboard to monitor compliance and to ensure workers receive their salaries on time, says Human Resources Minister Datuk Seri R. Ramanan.
The system is also expected to help the government gather data, particularly on skilled workers across different occupations.
“More than four million workers are expected to benefit from the minimum wage increase,” he said.
Under Budget 2027 proposals, minimum wage will rise from RM1,700 to RM2,000 per month from June next year.
“Micro, small and medium enterprises (MSMEs) with annual sales below RM50mil will be exempted to give them time to adjust,” said Ramanan.
Graduates and semi-skilled workers will get a starting basic salary of RM2,500.
He said there was a lack of data on skilled workers, who get higher salaries.
“The e-Wages system will help us obtain the necessary data.
“It will provide a live dashboard to ensure companies comply with the established regulations and that employees receive the wages they are entitled to on their designated payday.
“Of course, some companies are not entirely happy with the decision,” he added.
The ministry, he said, is also preparing comprehensive starting salary guidelines which will cover different occupations and qualification levels, like graduates, diploma holders, individuals with specified skills and holders of Malaysian Skills Certificates (SKM) Levels 1 and 2.
“The guidelines are targeted for publication alongside the new Minimum Wages Order in June 2027,” he said.
Ramanan said the government planned to amend the National Wages Consultative Council Act 2011 (Act 732) to introduce educational qualifications as a factor in minimum wage determination.
“The current Act does not specifically provide for minimum wages based on educational attainment,” he said.
He said that, under the 13th Malaysia Plan, the government aims to achieve a median salary of RM3,500 and increase employees’ compensation to 40% of gross domestic product by 2030.
However, he said there should not be excessive pressure on businesses to prevent triggering inflationary effects.
Ramanan also said the RM50mil threshold for an employer to implement the new minimum wage would involve the whole company and not individual subsidiaries.
“For example, if a subsidiary belongs to a holding company or parent company, we must assess the entire group. The company will be evaluated based on its total turnover, overall tax and income classifications.
“Nevertheless, we also welcome companies with turnover below RM50mil to adopt the RM2,000 minimum wage voluntarily,” he said.
