The topic of minimum wage has recently made headlines again. This was brought on by the publication of a salary guidebook under the progressive wage policy (PWP), which will offer different minimum wages based on jobs. 

This is very different from the current minimum wage, which is standardised across industries. As an employee, the PWP could change things for you, but first, you need to understand what minimum wage is. 

Let’s break it down. 

Minimum Wage: Your Salary Should Not Be Less Than This

Minimum wage is the lowest basic pay that employers must give employees for their work or services during a specific period – it cannot go lower than that. 

Currently, the minimum wage in Malaysia is RM1,500 per month, which all employers must adhere to. There are also minimum rates for daily and hourly wage employees. However, during the recent Belanjawan 2025 presentation, it was announced that the minimum wage will increase to RM1,700 per month, starting on February 1, 2025. Employers with fewer than 5 workers will have until August 1, 2025 to comply with this new wage rate.

Here are the rates: 

(Malaysia’s minimum wage applies to all private sector employees, except for those in domestic services, such as domestic workers, gardeners, and private chefs.)

These standards protect workers from being exploited, and they are backed by Malaysian laws. Employers who don’t follow them can face penalties. 

More importantly, the minimum wage is meant to cover basic living costs, as well as help Malaysia grow: 

1. Ensure that the basic needs of employees and their family are met 
2. Provide sufficient social protection to employees
3. Improve Malaysia’s labour productivity
4. Decrease Malaysia’s reliance on foreign workers

Malaysia’s minimum wage policy was introduced in 2013. It is to be reviewed every two years (due this year!)as mandated by the National Wages Consultative Council Act 2011.

Is The Current RM1,500 Minimum Wage Enough For You?

This actually depends on whether you live in urban or rural areas. The Malaysian Trades Union Congress (MTUC), for example, has stressed that RM1,500 is no longer sufficient for those in big cities today as the price of goods has increased due to inflation, caused by factors like production costs increase and government policies.

Because of this, some entities have explored new concepts to complement the minimum wage, like the living wage. 

Living Wage

Bank Negara Malaysia (BNM) proposed the living wage concept in 2016, which is described as the income level needed for a minimum acceptable living standard. This includes getting the opportunities for personal and family development and freedom from severe financial stress. In its proposal, BNM set the living wage at between RM2,700 to RM6,500:  

Source: BNM

There is also a concept called the Universal Basic Income. Here are the main things about it that you should be aware of:

What To Do If You’re Not Paid The RM1,500 Minimum Wage? 

If you’re not getting the minimum wage, you should lodge a complaint with the Ministry of Human Resources (MOHR) through these channels: 

• Visit Jabatan Tenaga Kerja (JTK) office
• Email Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM) at jtksm@mohr.gov.my
• Call JTKSM at 03-8000 8000
• File a complaint through the Working For Workers app
• Use the Public Complaint Management System (SISPAA)

Meanwhile, these are some information that you’ll need when lodging your complaint: 

• Your details 
• Employer’s details 
• Details of the issue
• Copy of relevant supporting documents (e.g. latest payslip, letter of offer, etc)

If you’re a gig worker earning irregular income, you, too, will not be protected by the minimum wage policy. However, learn to manage your income more effectively through these steps!