The Human Resources Ministry is laying down the law. Starting from 1 August, the minimum monthly wage employers must pay to staff is RM1,700.
The Ministry says that after the date, the rule will be applied to all employers nationwide, regardless of the number of employees working under them.“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.”
Prior to this, it gave employers with fewer than five employees a six-month deferment period, which is scheduled to end by the end of this month. “All employers are required to adhere to this minimum rate to ensure that workers’ rights are protected in accordance with the prevailing laws.” The law covers foreign workers and apprentice contract workers, but does not include domestic helpers.
The Ministry is also recommending that companies and employers adopt a voluntary progressive wage policy, as a way of complementing the implementation of the new minimum wage order. “Through the PWP, employers have the opportunity to raise employees’ incomes based on productivity, skills, and work contributions, while also benefiting from targeted cash incentives provided by the government.”
The Ministry also made it clear that failure to adhere to the new minimum wage rule is an offence under the National Wages Consultative Council Act 2011 and can result in a fine of up to RM10,000 against the employer for each employee, with an additional RM1,000 for each day the offence continues after conviction. If the employer becomes a repeat offender, the maximum penalty may reach RM20,000 per employee or up to five years imprisonment.
(Source: The Edge, Malay Mail, The Star)
