Minimum Wage in Malaysia: Current Rate and What It Means
The current minimum wage in Malaysia, who it applies to, how it has changed over the years, and how it relates to take-home pay.
What is the minimum wage now?
Malaysia sets a national minimum wage through the Minimum Wages Order. As of 2025 the rate was raised to RM1,700 per month, applying first to employers with five or more employees and extended to smaller employers shortly after. This is the legal floor for basic monthly wages — your employer cannot pay you less for normal working hours. Always confirm the current figure, as it is reviewed periodically.
Who does it cover?
The minimum wage applies to most private-sector employees regardless of nationality, with limited exceptions such as domestic servants and certain apprenticeships. It covers basic wages and does not include allowances, overtime, or bonuses. If you are paid daily or hourly, the order also specifies equivalent daily and hourly minimums based on your number of working days.
Minimum wage vs take-home pay
Remember that the minimum wage is a gross figure. After the 11% EPF deduction and small SOCSO and EIS contributions, your take-home pay will be a little lower — though at this income level you generally pay no income tax. The trade-off is that EPF deductions at the minimum wage are still building your retirement savings, even on a modest salary.
A short history
Malaysia introduced its first national minimum wage in 2013 at RM900 in Peninsular Malaysia and RM800 in East Malaysia. It has been revised several times since — to RM1,000, then RM1,100, then RM1,200 in major cities, then a unified RM1,500 in 2022, and RM1,700 in 2025. The steady upward trend reflects rising living costs and policy aimed at lifting low-income workers.
What if you are paid below it?
Paying below the minimum wage is an offence. If you believe you are underpaid, you can raise it with the Department of Labour (Jabatan Tenaga Kerja) under the Ministry of Human Resources, which handles complaints and enforcement. Keep your payslips and employment contract as evidence of what you were actually paid.
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