Minimum Wages in Malaysia

1. Effective Date and Applicability:

1.1 With effect from 1 February 2025, it shall apply to:
(a) employers with five or more employees; and
(b) employers of any size engaged in professional activities classified under the Malaysia Standard Classification of Occupations (MASCO) as officially published by the Ministry of Human Resources.

1.2 With effect from 1 August 2025, it shall apply to:
(a) employers with less than five employees excluding those engaged in professional activities classified under MASCO

2. Wages Rate:

2.1 Minimum wages for employees based on payment structure:

	Monthly-rated Employees
	RM 1,700.00 per month
	Daily-rated Employees
For a 6-day work week	For a 5-day work week	For a 4-day work week
RM 65.38 per day	RM 78.46 per day	RM 98.08 per day
	Hourly-rated Employees
	RM 8.72per hour

2.2 piece-rated employees:
For employees who are not paid on basic wages but are compensated solely by piece rate, tonnage, task, trip or commission, the minimum monthly wage payable shall not less than RM 1,700.00 effective 1 February 2025.

3. Meaning of Wages

According to the Employment Act 1955,
“wages” means basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service but does not include—
(a) the value of any house accommodation or the supply of any food, fuel, light or water or medical attendance, or of any approved amenity or approved service;
(b) any contribution paid by the employer on his own account to any pension fund, provident fund, superannuation scheme, retrenchment, termination, lay-off or retirement scheme, thrift scheme or any other fund or scheme established for the benefit or welfare of the employee;
(c) any travelling allowance or the value of any traveling concession;
(d) any sum payable to the employee to defray special expenses entailed on him by the nature of his employment;
(e) any gratuity payable on discharge or retirement; or
(f) any annual bonus or any part of any annual bonus.

4. Offence and Penalties

According to the National Wages Consultative Council Act 2011 Section 43,
An employer who fails to pay the basic wages as specified in the minimum wages order to his employees commits an offence and shall, on conviction, be liable to a fine of not more than ten thousand ringgit for each employee.

5. Below are the links to the relevant documents:

Minimum Wages Order 2024: https://minimumwages.mohr.gov.my/images/PUA%20376.pdf
National Wages Consultative Council Act 2011: https://jtksm.mohr.gov.my/sites/default/files/2023-03/3.%20National%20Wages%20Consultative%20Council%20Act%202011.pdf
Employment Act 1955: https://jtksm.mohr.gov.my/sites/default/files/2023-11/Akta%20Kerja%201955%20%28Akta%20265%29.pdf