Malaysia proposes safeguards against avoiding RM2,500 graduate starting pay
Proposed legal changes would link minimum starting salaries to educational qualifications, with a new wage order due to take effect in June 2027.
Malaysia is proposing legal safeguards to stop employers from downgrading job requirements to avoid a planned RM2,500 monthly starting salary for graduates and semi-skilled workers, Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan told the Dewan Rakyat on October 28.
He said proposed changes to the National Wages Consultative Council Act 2011 (Act 732) would bring educational qualification levels into the framework for setting mandatory minimum starting pay for graduates. If implemented, employers would not be able to arbitrarily disregard workers’ qualifications when assigning positions.
Khairul Firdaus was answering Wan Razali Wan Nor (PN-Kuantan), who questioned whether employers could replace degree requirements with diploma or Sijil Pelajaran Malaysia (SPM) qualifications to avoid the prescribed pay.
On implementation, the deputy minister said the National Wages Consultative Council (MPGN) was revising starting-pay guidelines using the Malaysia Standard Classification of Occupations (MASCO). The guidelines would accompany a new Minimum Wages Order taking effect in June 2027, including the RM2,500 monthly starting salary announced in Budget 2027.
Asked about aligning education with labour demand, he said the Department of Manpower (JTM) evaluated training against industry needs, drawing on more than 2,000 National Occupational Skills Standards (NOSS). Its assessment also covered industry participation, practical and workplace training, new technology skills and workers’ adaptability.
