Finance & Compliance

Unveiling Malaysia's Minimum Wages: All You Need to Know Before 2025

Winnie Lu

September 16, 2024

As an employer or HR professional in Malaysia, staying on top of minimum wage regulations is crucial. This blog post dives into everything you need to know about minimum wage in Malaysia for the upcoming year, including rates for part-timers, hourly equivalents, and regional variations.

What is the Minimum Wage in Malaysia?


The Minimum Wage Order 2022 increased the lowest salary to RM1,500 per month, effective May 1st, 2022. This applies to all employees in Peninsular Malaysia except for:

  • Those working in micro-businesses (fewer than 5 employees)
  • Businesses located outside of City Council or Municipal Council areas

Even for employees earning commission, piece rates, or other non-standard wages, their total monthly earnings must still be at least RM1,500.

Minimum Wage for Micro Businesses and Businesses NOT in Major Towns


The minimum wage increase under the amendments was deferred for micro-businesses (fewer than 5 employees) and businesses outside City Council or Municipal Council areas until January 1st, 2023. Since then, the minimum wage of RM1,500 applies nationwide.

Minimum Wage for Part-Timers


The minimum wage amendments also apply to employees paid on a daily or hourly basis, including part-timers.

Minimum Wage Rates
(Businesses located in of City Council or Municipal Council areas)
Monthly Daily Hourly
Number of working days per week
6 5 4
Before the Amendments RM 1,200.00 RM46.15 RM55.38 RM69.23 RM5.77
Current Minimum Wage Rates RM1,500.00 RM57.69 RM69.23 RM86.54 RM7.21
Minimum Wage Rates
(Businesses located outside of City Council or Municipal Council areas)
Monthly Daily Hourly
Number of working days per week
6 5 4
Before the Amendments RM1,100.00 RM42.31 RM50.77 RM63.47 RM5.29
Current Minimum Wage Rates RM1,500.00 RM57.69 RM69.23 RM86.54 RM7.21

Minimum Wages Adjustment Over the Years


The Malaysian government reviews the minimum wage at least once every two years. The following table shows the minimum wage adjustments over the years:

Year Minimum Wage Rates (Monthly)
1 Jan 2023 Entire Country: RM1,500
1 May 2022 Business in Major towns with 5+ employees: RM1,500
2019 & 2020 - Rural districts: RM1,100
- Major towns: RM1,200
2018 Entire Country: RM1,050
2016 & 2017 - Elsewhere: RM920
- Peninsular Malaysia: RM1,000

Call for RM2,000 Minimum Wage in Malaysia by 2025


As the cost of living continues to rise, there is growing pressure on the government to implement a minimum wage in Malaysia for 2025, set at RM2,000. Advocates are urging the inclusion of this wage policy in the upcoming Budget 2025, expected to be announced later this year, to help workers cope with economic challenges.

Staying Compliant with Minimum Salary Regulations


As an employer, adhering to minimum wage regulations is not just ethical but also mandatory by law. Here are some tips for staying compliant:

  • Stay updated: Keep yourself informed about any changes or revisions to the minimum wage through official government resources like the Ministry of Human Resources website.
  • Review employment contracts: Regularly review employment contracts to ensure they reflect the current minimum wage.
  • Maintain proper records: Maintain clear records of employee salaries and working hours to demonstrate compliance during inspections.

Conclusion


Understanding minimum wage regulations is essential for employers and HR professionals in Malaysia. By following the guidelines outlined in this blog post, you can ensure fair compensation for your employees and avoid any legal complications.

Simplify Minimum Wage Compliance with Swingvy HR & Payroll Software


Confused by minimum wage in Malaysia (part-timers, regions)? Swingvy's online payroll software is designed for SMEs in Malaysia and automates calculations for error-free payroll. Stay compliant, pay accurately, and focus on what matters – your business!

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More Resources for You

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Disclaimer: This blog post provides general information and shouldn't be interpreted as legal advice. For comprehensive details and the latest updates, refer to the official website of the Ministry of Human Resources Malaysia.

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