Minimum wage 2026: RM1,700 a month, rising to RM2,000 from Jun 2027 except MSMEs under RM50 million

The current minimum wage is set by the Minimum Wages Order 2024 [P.U. (A) 376/2024], gazetted on 4 Dec 2024. On 21 Oct 2026, the portal of the National Wages Consultative Council (MPGN) Secretariat still showed RM1,700 a month and RM8.72 an hour.

Current rate: RM1,700 a month or RM8.72 an hour

Under paragraph 5 of the Order, the following rates apply to all employers from 1 Aug 2025. The daily rate depends on how many days you work in a week.

Some workers are not paid a basic wage, but are paid by piece rate, tonnage, task, trip or commission. Their monthly wages must also be at least RM1,700.

The minimum wage means the basic wage. According to the Minimum Wages Order FAQ by the MPGN Secretariat, allowances, incentives and other additional payments are not counted. Employers also cannot pay less than this rate even if the employee agrees.

Small employers must pay RM1,700 since 1 Aug 2025

The 2024 Order took effect in two stages:

A media statement by the Ministry of Human Resources (KESUMA) dated 22 Jul 2025 stressed that from 1 Aug 2025, all employers "without exception" must comply with the RM1,700 rate. This includes employers who previously had a deferment period.

Who is covered and who is exempt

• Covered: all private sector employees, including non-citizen employees (MPGN FAQ).
• Apprentices: the KESUMA statement of 22 Jul 2025 says this rate also applies to employees on apprenticeship contracts.
• Exempt: domestic servants as defined in the Employment Act 1955, the Sabah Labour Ordinance and the Sarawak Labour Ordinance (paragraph 2 of the Order).

However, a leaflet from the Labour Department of Sarawak (JTK Sarawak) lists apprentices as not covered. If you are an apprentice, ask a JTK office whether your contract is covered.

Budget 2027: RM2,000 from Jun 2027, MSMEs under RM50 million exempt

According to the Budget 2027 Speech (paragraph 32), tabled on 9 Oct 2026, the Government agreed to raise the minimum wage from RM1,700 to RM2,000. The rate takes effect from Jun 2027.

• Micro, small and medium enterprises (MSMEs) with sales turnover below RM50 million are exempt, to give them room to adjust their business models.
• More than 4 million workers will be subject to the new rate.
• A minimum wage of RM2,500 a month for semi-skilled jobs and graduates is introduced "as a start".

Status: Expected. On 21 Oct 2026, we checked the list of P.U. (A) instruments in the Attorney General's Chambers legislation database. There is no new Minimum Wages Order after P.U. (A) 376/2024.

The actual date in June, the exemption period for MSMEs and how sales turnover is calculated have not been announced. Neither has the implementation of the RM2,500 rate. Berita RTM reported that the Human Resources Minister repeated the rate and the exemption at a press conference on 16 Oct 2026. Until the new Order is gazetted, the legal rate remains RM1,700.

EPF and SOCSO deductions on a RM1,700 salary

The minimum wage is measured on the basic wage before deductions, so the amount paid into your account is lower after mandatory contributions. Assumptions for the example below: a citizen under 60 who has not opted out of LINDUNG 24 Jam, with no allowances or overtime.

EPF figures are taken from the Third Schedule of the EPF Act 1991 (band RM1,680.01 to RM1,700). SOCSO figures are from the Act 4 contribution table (Jun 2026) and Act 800. The employer contribution is made up of EPF RM221, SOCSO RM28.85 and EIS RM3.30.

If you have already opted out of LINDUNG 24 Jam, total deductions are RM198.55. On a RM2,000 salary, EPF contributions under the current schedule are RM220 for the employee and RM260 for the employer. These figures are our calculations, not official EPF figures.

Details of each contribution are in our guides to EPF contribution rates 2026 and SOCSO and EIS rates 2026.

How to complain if you are paid below RM1,700

The minimum wage is enforced by the Department of Labour Peninsular Malaysia (JTKSM), JTK Sabah and JTK Sarawak. According to the JTKSM Complaints page, you can file a complaint through:

• letter or email;
• the Public Complaints Management System (SISPAA);
• the Working for Workers (WFW) app;
• a visit in person to the nearest Labour Office.

Prepare your and your employer's details, the issue you are complaining about, and copies of your appointment letter or contract and your latest payslip. The MPGN FAQ lists the JTKSM line 03-8886 5192 (jtksm@mohr.gov.my), JTK Sabah 088-238755 and JTK Sarawak 082-242261.

According to KESUMA (22 Jul 2025), employers convicted of an offence can be fined up to RM10,000 for each employee. An additional fine of RM1,000 is imposed for each day the offence continues after conviction. For repeat offences, the fine is up to RM20,000 or imprisonment of up to 5 years.

File complaints only through the official channels above. This site does not accept wage complaints, and we will never ask for your MyKad number, OTP or bank details.

What it means for you

• Check your payslip. Your basic wage should be at least RM1,700 a month, or RM8.72 an hour if you are paid by the hour.
• Small employers. The deferment period ended on 31 Jul 2025, so the RM1,700 rate applies regardless of the number of employees.
• The RM2,000 rate. This rate is not yet in force. If your employer is an MSME with sales below RM50 million, it may not apply. Wait for the gazetted Order, and we will update this article.
• Work out your net salary. Estimate your EPF, SOCSO, EIS and PCB deductions with the Net Salary Calculator.