Malaysia reviews RM1,700 minimum wage rate

The Malaysian government is reviewing the current minimum wage of RM1,700 per month to determine whether to maintain the rate or implement an increase. The final decision will be made by the National Wages Consultative Council and the National Wages Consultative Council and Gig Council.

Human Resources Minister R. Ramanan stated that the review will evaluate several economic indicators, including the poverty line, median wage, inflation, labor productivity, and the unemployment rate. These factors aim to balance the basic needs of workers with the ability of employers to pay wages.

While the ministry has not conducted a specific study on a living wage, Ramanan noted that Bank Negara Malaysia estimated a living wage for a single person in Kuala Lumpur to be approximately RM2,700 in 2018. Additionally, the 13th Malaysia Plan outlines labor market reforms intended to accelerate wage adjustments by considering living wage standards. The current RM1,700 rate is scheduled to be in effect from August 2025, excluding domestic workers and apprentices.