Starting August 1, all employers across Malaysia regardless of company size – will be required to implement the revised national minimum wage of RM1,700 per month.
The enforcement now extends to employers with fewer than five employees, who were previously granted a temporary exemption.
Initially, the revised minimum wage was enforced on employers with five or more workers from February 1, 2025, as announced during the 2025 Budget presentation. Smaller businesses were granted a six-month adjustment period, ending on July 31, to reorganize their financial operations.
With the exemption period now ending, all employers must comply with the new minimum wage requirements, irrespective of their workforce size.
In a statement issued by the Ministry of Human Resources (KESUMA), employers are urged to review and revise their employee salary structures immediately to ensure that no worker is earning below the RM1,700 threshold.
Failure to comply may result in a fine of up to RM10,000 per employee and/or imprisonment of up to five years, under the National Wages Consultative Council Act 2011.
-HR HUB
