Malaysia's RM2,000 minimum wage to start in June 2027
Smaller businesses will receive more time to adjust, while the government hopes larger employers will review pay beyond entry-level roles.
Malaysia will introduce a RM2,000 minimum wage in June 2027, with the timetable intended to give employers time to revise their pay structures, Treasury Secretary-General Tan Sri Johan Mahmood Merican said. The policy will begin with large companies.
Speaking after a Malaysian Economic Association post-budget debate in Kuala Lumpur on October 12, Johan said household financial pressure was mainly driven by wages failing to keep pace with living costs, despite contained headline inflation. He described the minimum wage increase as an important part of efforts to raise earning power, but not a complete solution.
Johan said the government wanted larger employers to review salaries across their workforce, rather than raise only the lowest pay levels while leaving intermediate wages unchanged. Government-linked companies have been required to adopt a RM3,400 living wage baseline, which he said would provide a private-sector benchmark.
The National Wages Consultative Council, whose membership includes trade unions and employer federations, endorsed the RM2,000 level without dispute, Johan said. However, the Cabinet granted micro, small and medium enterprises a longer adjustment period to cushion cost pressures as they deal with economic spillovers from continuing geopolitical tensions in the Middle East.
Johan said the government would continue pursuing the Progressive Wage Policy alongside the two wage thresholds. It also plans to introduce a separate minimum wage tier for semi-skilled jobs.
