Govt to amend law to make RM2,500 minimum starting salary for graduates mandatory

PUTRAJAYA: The government is set to amend the National Wages Consultative Council Act to make it mandatory for employers to pay graduates a minimum starting salary, according to Human Resources Minister Datuk Seri R. Ramanan. Ramanan explained that the proposed amendments would incorporate educational qualifications as a factor in determining minimum wages, as the existing legislation lacks specific provisions allowing minimum wages to be prescribed based on workers' educational backgrounds.

The ministry is working swiftly to prepare the necessary papers and legislative amendments, which it aims to bring forward as soon as possible. Ramanan addressed reporters at a press conference, responding to inquiries about the timeline for the proposed amendments, including provisions linking salaries to educational qualifications, but did not disclose the exact date for tabling the amendments in parliament.

The government's 2027 Budget announcement introduced a RM2,500 minimum starting salary framework for graduates and semi-skilled workers. The ministry plans to initially introduce the salary framework through guidelines, scheduled for implementation in June 2027, while the proposed amendments will establish the legal basis for mandatory enforcement at a later time.