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From February 1, 2025, the monthly minimum wage will increase to MYR 1,700 per month for most businesses. This is equivalent to USD 380.91. This change applies specifically to companies that:
- Employ five or more workers, or
- Operate within professions classified under the Malaysian Standard Classification of Occupations (e.g., doctors, lawyers, engineers).
This minimum wage policy applies universally, regardless of the employment mode (full time or part-time), employee’s citizenship, or how employees are compensated, including piece rates, tonnage, tasks, trips, or commissions. However, the minimum wage increase does not apply to apprentices or domestic workers.
Understanding Malaysia's Minimum Wage Update for 2025: What Employers Need to Know
Atlas | Nov 2024
Budget 2025: RM1,700 minimum wage aims to uplift low-income workers and drive economic growth, says Steven Sim
Malaymail | Oct 2024
News Sources
SHRM Online: Global HR News
SHRM Global HR Monthly Newsletter: Subscribe
ABYZ News Links: Malaysia Newspapers and News Media
GlobeSmart: Malaysia Country Guide via SHRM Online
SHRM's partnership with Aperian Global provides SHRM members with access to GlobeSmart, an online learning platform that promotes global collaboration and inclusion. Through GlobeSmart, SHRM members can access information on working in globally diverse environments with people from different cultures. In addition, members can also access global employment law information through the Employment Law Alliance's Global Employer Handbook.
Access: Included with your SHRM membership. See this HRQA for instructions.
International Lawyers Network: Establishing A Business Entity In Malaysia
This guide offers an overview of legal aspects of establishing an entity and conducting business in the requisite jurisdictions. It is meant as an introduction to these marketplaces and does not offer specific legal advice.
Access: Complimentary access to Establishing A Business Entity In Malaysia via JD Supra.
Additional Employment Law Resources
Going Global Series: Malaysia
DLA Piper
Basic Guide to Employment Law in Malaysia
Chia, Lee & Associates
Law Firm Resources
JD Supra: Malaysia
Mondaq: Malaysia
Additional Guides
CIA World Factbook: Malaysia
World Travel Guide: Malaysia
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