In a statement, the human resources ministry said the new minimum wage is in line with the government’s commitment to help improve the nation’s economy by increasing the people’s purchasing power.
The minimum wage of RM1,700 applies to all workers in Malaysia, except for domestic workers and apprentices.
According to the frequently asked questions (FAQ) on the order prepared by the National Wages Consultative Council secretariat, the minimum wage policy must not discriminate against any worker on the grounds of nationality.
The ministry warned that employers who fail to comply may face penalties ranging from RM1,000 to RM20,000, or imprisonment for up to five years.
The ministry also stressed that the minimum wage should not be used as a benchmark for starting salaries, especially for graduates, adding that workers should be paid fairly based on their skills.
When tabling the 2025 budget last October, Prime Minister Anwar Ibrahim announced that the government had agreed to raise the minimum wage from RM1,500 to RM1,700 per month, effective Feb 1.
Anwar, who is also finance minister, said the government had decided to delay the implementation of the RM1,700 minimum wage for employers with fewer than five employees by six months until Aug 1.
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