Govt reviews RM1,700 minimum wage, with possible increase under new wage formula
THE Government is reviewing its RM1,700 monthly minimum wage to determine whether the current rate should be retained or raised, with the Government considering living-wage benchmarks alongside broader economic and labour-market indicators. Human Res...
The Malaysian government is reviewing its RM1,700 monthly minimum wage to determine if it should be increased, according to Human Resources Minister Datuk Seri R. Ramanan. The final decision will be made after the National Wages and Gig Economy Consultative Council completes its assessment, which will consider living-wage benchmarks and broader economic indicators.
The review, in line with Section 25 of the National Wages Consultative Council Act 2011, will examine basic indicators such as the Poverty Line Income, median wages, Consumer Price Index, labour productivity, and unemployment rate. The current minimum wage has been in place since August 2025, following the government's practice of reviewing the rate every two years.
The Progressive Wage Policy, introduced to complement the minimum wage, aims to shift the wage structure towards pay reflecting workers' skills. As of August 2026, 5,910 employers have applied for the Progressive Wage System, with 4,025 (68.1%) raising workers' wages and submitting claims for incentives. The policy offers incentives of up to RM200 per month for entry-level workers and RM300 for non-entry-level workers, benefiting 51,363 workers and disbursing over RM73 million in incentives.
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