Malaysia’s minimum wage stands at RM1,700 per month, and a rise to RM2,000 is now on the table. Economy Minister Akmal Nasrullah Mohd Nasir said on 28 September 2026 that the government is weighing the proposed increase from RM1,700 to RM2,000, balancing workers’ welfare against the survival of micro, small and medium enterprises. The final call is expected when Prime Minister Datuk Seri Anwar Ibrahim tables Budget 2027 on 9 October. Until a new Minimum Wages Order is gazetted, RM1,700 remains the legal floor.
This page tracks the rate as it moves. We update it whenever the Ministry of Human Resources or the National Wages and Gig Economy Consultative Council announces anything new, so bookmark it and check back.
RM2,000: the proposed new minimum wage
The RM2,000 figure is public, not speculation. It was raised as a measure to boost the incomes of low-wage workers, and Economy Minister Akmal Nasrullah put the trade-off plainly: implementation must be balanced so the workforce is supported “while ensuring the survival of employers, particularly small business owners and MSMEs.” Investment strategist Mohd Sedek Jantan of IPP Wealth Managers noted the proposed rise works out to 17.6%, against labour productivity growth of 4.3% to 4.8% in the first quarter of 2026.
Anwar had already confirmed on 26 September that the minimum wage increase is in its final stages, with details to be revealed in the 2027 Budget. Brokerage research is more conservative: Kenanga Investment Bank and other economists expect a rise of RM100 to RM200, landing the new rate between RM1,800 and RM2,000. So the realistic range going into 9 October is RM1,800, RM1,900 or RM2,000.
Minimum wage Malaysia: the current rates
The rate is set by the Minimum Wages Order 2024 under the National Wages Consultative Council Act 2011 (Act 732). It rolled out in two steps: employers with five or more employees (and professional-services employers under MASCO) from 1 February 2025, then everyone else, including micro-enterprises with fewer than five employees, from 1 August 2025.
| Measure | Rate | Notes |
|---|---|---|
| Monthly | RM1,700 | National flat rate, all states |
| Hourly | RM8.72 | Based on the 48-hour maximum week; also the part-time floor |
| Daily, 6-day week | RM65.38 | RM1,700 ÷ 26 days |
| Daily, 5-day week | RM78.46 | RM1,700 ÷ 21.67 days |
| Daily, 4-day week | RM98.08 | RM1,700 ÷ 17.33 days |
One rule catches many employers out: the RM1,700 refers to basic wages only. Allowances, bonuses, commissions and overtime cannot be counted toward the floor. A worker on RM1,500 basic plus RM200 transport allowance is not compliant.
The official rate table as published by StaffAny, verified 28 September 2026. Source: StaffAny / Minimum Wages Order 2024.
Gaji minimum Malaysia 2026: ringkasan
Gaji minimum Malaysia pada 2026 ialah RM1,700 sebulan atau RM8.72 sejam, mengikut Perintah Gaji Minimum 2024. Kadar ini berkuat kuasa 1 Februari 2025 bagi majikan dengan lima pekerja atau lebih, dan 1 Ogos 2025 bagi semua majikan lain. Kerajaan kini menyemak semula kadar tersebut melalui Majlis Gaji Kebangsaan dan Ekonomi Gig (MPGGN) di bawah Seksyen 25, Akta Majlis Perundingan Gaji Kebangsaan 2011. Tiada kadar baharu diisytiharkan setakat 28 September 2026.
What the review covers, and why it matters
The review is being carried out under Section 25 of the National Wages Consultative Council Act 2011, with the final decision expected after the council completes its assessment. The indicators on the table, as reported by Utusan Malaysia and The Vibes:
- Poverty Line Income (PGI) — RM2,705 per household per month in 2024, up from RM2,589 in 2022, and already above the minimum wage.
- Median wages — up only 0.9% in nominal terms as of March 2026, and down 0.8% in real terms after inflation.
- CPI, labour productivity and unemployment — the standard adjustment inputs.
- Employers’ capacity to pay — the side of the table business groups keep pointing to.
Bank Negara Malaysia’s 2018 living-wage estimate sits in the background: RM2,700 a month for a single person in Kuala Lumpur. The Department of Statistics’ PAKW (Basic Expenditure of Decent Living) measure gives finer state-level figures, from a 92.0 index in Selangor down to 53.7 in Kelantan and Sarawak, with Kuala Lumpur set at 100.
The government reviews the minimum wage roughly once every two years, and the Thirteenth Malaysia Plan (RMK13) explicitly calls for wage adjustments that take living wages into account. That is the strongest public signal so far that the next order will land above RM1,700 — but a signal is not a gazette.
Human Resources Minister Datuk Seri Ramanan Ramakrishnan confirmed the review on 18 August 2026. Source: The Vibes.
The Progressive Wage Policy runs alongside it
Separately from the statutory floor, the voluntary Progressive Wage Policy (DGP) is paying employers to lift wages. The numbers as of August 2026: 5,910 employers applied, 4,025 of them (68.1%) raised workers’ wages and claimed incentives, benefiting 51,363 workers. Over RM73 million in incentives has been disbursed — about RM10.2 million for entry-level workers and RM62.9 million for non-entry-level workers. Registered companies can claim up to RM200 a month per entry-level worker (first 12 months) and up to RM300 a month per non-entry-level worker, conditional on at least 21 hours of recognised training.
Who is covered, and what happens if you underpay
The order covers private-sector employees, including non-citizens on valid permits — there is no separate rate for foreign workers. The exemptions are narrow: domestic servants and apprentices. Part-time and hourly workers must get at least RM8.72 per hour.
Paying below the floor is not a slap on the wrist. A first offence carries a fine of up to RM10,000 per underpaid employee, with continuing offences adding up to RM1,000 a day and repeat offences reaching RM20,000 or imprisonment.
Sources
- The Vibes — “RM2,000 minimum wage must balance workers’ welfare, SME survival, says Akmal”, 28 September 2026 — thevibes.com
- The Vibes — “Govt reviews RM1,700 minimum wage, with possible increase under new wage formula”, 18 August 2026 — thevibes.com
- China Press — “Budget 2027 expected: minimum wage up RM100–RM200 to RM1,800–RM2,000”, 22 September 2026 — chinapress.com.my
- RinggitPlus — “Govt Reviews RM1,700 Minimum Wage For Possible Hike” — ringgitplus.com
- StaffAny — “Minimum Wage Malaysia 2026: RM1,700 Monthly, Daily and Hourly Rates” (official figures summarised as of 4 September 2026) — staffany.my
- Employsome — “Minimum Wage in Malaysia: The Complete 2026 Guide” — employsome.com
- Department of Statistics Malaysia (PAKW living-measure data) — dosm.gov.my
This article is general information, not legal or payroll advice. Verify the current order with the Ministry of Human Resources before making payroll decisions.
