Malaysia will enforce the minimum wage of RM1,700 per month beginning Aug 1 for all employers nationwide, the Ministry of Human Resources said on Tuesday.
The six-month grace period for employers with fewer than five staff will expire this month, and there will no longer be any further exceptions, the ministry said in a statement. The policy also covers foreign workers and apprentice contract workers, though it would not include domestic helpers.
The minimum wage policy adjustment was announced during the Budget 2025 tabling in October last year, from RM1,500 per month that has been implemented since 2022.
"Failure to comply with the Minimum Wage Order constitutes an offence under the National Wages Consultative Council Act 2011,” the statement read.
This entails a fine of up to RM10,000 against the employer for each employee, added with an additional RM1,000 fine for each day the offence continues after conviction, the ministry said.
“For repeat offences, the maximum penalty may reach RM20,000 or imprisonment for up to five years,” it added.
Aside from the minimum wage requirement, the government is also pushing for voluntary progressive wage policy. Under this programme, which is available until end-2027, an employer could increase wages to required levels and receive government support of up to RM300 per month for eligible employees.
The progressive wage policy would help companies “retain high skilled employees, and strengthen long-term competitiveness in an increasingly challenging labour market”, the ministry said.
Source: theedgemalaysia