Malaysia targets June 2027 for starting pay guidelines
The proposed framework would set benchmarks by occupation and qualification, with legal amendments planned to enable mandatory minimum pay for graduates.
Malaysia plans to issue and implement starting pay guidelines in June 2027, timed to accompany the Minimum Wage Order, Human Resources Minister Datuk Seri R Ramanan said. The proposed benchmarks would distinguish between occupations, qualifications and skills, covering graduates and semi-skilled workers.
Ramanan said the framework would follow the Malaysian Standard Classification of Occupations (Masco). Benchmarks for categories 1 to 3 were developed using Graduate Study findings and engagement sessions. Recommendations from the Progressive Wage Policy also informed the framework, complementing guidelines covering categories 4 to 8.
The graduate proposals include degree and diploma holders, alongside holders of Malaysian Advanced Skills Diplomas at Level 5, Malaysian Skills Diplomas at Level 4 and Malaysian Skills Certificates at Level 3. For semi-skilled roles, the ministry intends to align its approach with skills-based starting salary guidance, including certificate holders at Levels 1 and 2.
The ministry also intends to amend the National Wages Consultative Council Act 2011 [Act 732] to incorporate educational qualifications. Ramanan said this would allow graduate minimum wages to become compulsory in future; the law currently lacks a specific provision for qualification-based rates.
Separately, the ministry is refining salary-payment monitoring through an e-wages module. Ramanan said its proposed coverage would include non-citizens. The mechanism is intended to support enforcement, check compliance with payment methods under the Employment Act 1955 and address missing, late, incorrect or below-minimum pay.
Prime Minister Datuk Seri Anwar Ibrahim previously announced that the wage floor would rise to RM2,000 from RM1,700 in June 2027, benefiting more than four million workers. He said micro, small and medium enterprises would be exempt if their annual sales were below RM50 million, allowing adjustment time. Planned income reforms also include an initial monthly minimum of RM2,500 for graduates and semi-skilled jobs.
