Minimum Wage Malaysia 2026: Current Rate & Your Rights

Knowing the minimum wage in Malaysia is one of the most practical things you can do to protect yourself as a worker — or to ensure compliance as an employer. Whether you are starting a new job, reviewing your payslip, or hiring your first employee, understanding the legal floor for pay in Malaysia is essential. This guide explains the current minimum wage rate, who it applies to, how daily and hourly rates are calculated, and what recourse you have if your employer fails to comply.

What is the Current Minimum Wage in Malaysia?

Malaysia’s minimum wage is RM1,700 per month, effective since February 1, 2025 (employers with fewer than five employees had until August 1, 2025 to comply). This rate applies uniformly across all regions — Peninsular Malaysia, Sabah, Sarawak, and Labuan — under the Minimum Wages Order 2024, issued pursuant to the Minimum Wages Act 2012.

Quick Reference: Minimum Wage Rates

A Brief History of Malaysia’s Minimum Wage

Malaysia introduced its first statutory minimum wage in 2013, and the rate has been revised several times since:

Each revision has been implemented via a new Minimum Wages Order, and the increases have generally tracked inflation and cost-of-living improvements. The increase from RM1,500 to RM1,700 (13.3%) was introduced by the Minimum Wages Order 2024 and took effect on 1 February 2025.

Who Does Minimum Wage Apply To?

The minimum wage under the Minimum Wages Act 2012 covers a broad range of workers in the private sector.

Private Sector Employees (Malaysian and Permanent Residents)

All Malaysian citizens and permanent residents working in the private sector are entitled to the minimum wage, regardless of their job role, industry, or geographic location within Malaysia. This includes full-time, part-time, contract, and temporary employees.

Foreign Workers

One of the most important — and sometimes overlooked — aspects of Malaysia’s minimum wage law is that it applies equally to foreign workers. Employers are legally prohibited from paying foreign employees a lower rate on the basis of nationality. The same RM1,700 monthly floor applies to documented foreign workers employed in the private sector.

Part-Time Workers

Part-time employees do not receive a fixed monthly minimum, but they are protected on an hourly basis. The minimum hourly rate of RM8.72 ensures that part-time workers receive proportionate minimum pay, preventing exploitation through reduced hours.

Exemptions from the Minimum Wage

The following categories of workers are not covered by the Minimum Wages Order:

• Domestic servants: This includes live-in maids, gardeners, cooks, and other household workers. Their wages are governed solely by their employment contracts and private negotiation.
• Apprentices registered under the Apprenticeship Act 1952: Apprentices enrolled in a formal apprenticeship programme are exempt, as their arrangements are governed separately.

It is worth noting that domestic workers in particular occupy a legally vulnerable position, as they also fall outside the scope of the Employment Act 1955. If you employ a domestic worker, you are encouraged to offer fair and clearly documented contract terms.

How is Daily and Hourly Minimum Wage Calculated?

The Minimum Wages Order 2024 sets specific daily and hourly equivalents of the monthly minimum wage. Understanding this is critical for part-time employment, daily-rated work, and pro-rated pay calculations.

Daily Rate Formula

The daily minimum depends on how many days you normally work each week. The Order converts RM1,700 into a weekly amount (RM1,700 × 12 ÷ 52 ≈ RM392.31) and divides it by the number of working days:

These rates apply to daily-rated employees, who are paid for the days they actually work rather than a fixed monthly salary.

Hourly Rate Formula

Hourly Rate = Monthly Wage × 12 ÷ 52 ÷ 45 hours

Using the current minimum wage:

RM1,700 × 12 ÷ 52 ÷ 45 = RM8.72 per hour

The 45 hours reflect the maximum normal working week under the Employment Act 1955. The hourly minimum of RM8.72 is the same regardless of how many days a week you work, and it is the legal minimum for any part-time or hourly-rated employee.

Worked Example: Part-Time Worker

Suppose an employee works 4 hours per day, 5 days per week (20 hours per week, roughly 80 hours per month):

• Minimum hourly rate: RM8.72
• Gross minimum pay: 80 hours × RM8.72 = RM697.60 per month

This employee is not entitled to the full RM1,700 — only to the hourly minimum applied proportionately to actual hours worked.

Minimum Wage for Specific Work Arrangements

Shift Workers

Shift workers — including those on rotating, night, or split shifts — are subject to the same monthly minimum wage of RM1,700. Shift allowances or premiums paid on top of the base wage are not counted toward meeting the minimum wage threshold; the base wage itself must reach RM1,700.

Piece-Rate Workers

Employees paid on a piece-rate basis (per unit produced, per task completed, etc.) must have their total monthly earnings meet or exceed RM1,700. If a worker’s piece-rate earnings fall short in any given month, the employer is legally obligated to top up the difference to reach the minimum.

Commission-Based Workers

For employees whose pay consists of a base salary plus sales commission, the combined total of base salary and any guaranteed allowances must meet the RM1,700 threshold. Variable commissions that depend on performance are not counted toward the minimum — the guaranteed component of pay must independently satisfy the minimum wage.

What Counts as “Wages” for Minimum Wage Purposes?

Not every payment an employer makes to an employee counts toward the minimum wage threshold. Understanding this distinction protects workers from employers who attempt to meet the minimum by including payments that legally should not be counted.

Included in Wages

• Basic salary
• Fixed monthly allowances (e.g., fixed transport allowances specified in the employment contract)

Excluded from Wages

The following are not counted toward the RM1,700 minimum:

• Overtime pay
• Annual bonuses or incentive payments
• Shift allowances (non-fixed)
• Travel, meal, or housing allowances
• Employer contributions to EPF (Employees Provident Fund) and SOCSO (Social Security Organisation)

This last point is particularly important: an employer cannot claim that their EPF or SOCSO contributions bring a RM1,400 salary up to the minimum wage level. The RM1,700 must be paid as wages directly to the employee.

If Your Employer Pays Below Minimum Wage

Being paid less than the legal minimum wage is a violation of the Minimum Wages Act 2012. Here is what you can do.

Step 1: Document Everything

Before taking action, gather evidence. Keep copies of your payslips, employment contract, bank transfer records, and any written communications about your salary. The more documentation you have, the stronger your case.

Step 2: Raise It Internally

In some cases — particularly in smaller businesses — an employer may be unaware that their pay structure is non-compliant. Raising the issue directly with HR or your employer gives them the opportunity to correct the matter without escalation. Get any response in writing.

Step 3: File a Complaint with the Department of Labour

If the issue is not resolved internally, you can formally report it to:

• Peninsular Malaysia: Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM)
• Sabah: Jabatan Tenaga Kerja Sabah (JTK Sabah)
• Sarawak: Jabatan Tenaga Kerja Sarawak (JTK Sarawak)

Complaints can be filed in person at a regional office or via the e-LawatanKerja online portal managed by the Ministry of Human Resources (MOHR). The JTKSM hotline is 1-800-88-5885.

Penalties for Employers

Under Section 31 of the Minimum Wages Act 2012, an employer found guilty of paying below the minimum wage is liable to a fine of up to RM10,000 per employee per offence. Repeat or wilful violations attract higher scrutiny and penalties. Employees are protected from retaliation under Malaysian labour law — your employer cannot legally terminate or penalise you for filing a valid complaint.

When Will the Minimum Wage Increase Next?

The Malaysian government reviews the minimum wage periodically, taking into account factors such as inflation, the Consumer Price Index (CPI), labour productivity, and cost of living. Reviews do not follow a fixed annual cycle — the Minimum Wages Order can be revised at any time by the Minister of Human Resources.

In Budget 2027, tabled on 9 October 2026, the government announced that the minimum wage will rise to RM2,000 per month from June 2027, with a temporary exemption for businesses with annual sales below RM50 million. The new rate only takes legal effect once a new Minimum Wages Order is gazetted, so until then RM1,700 remains the legal minimum.

For the most current and authoritative information, always refer to:

• The Ministry of Human Resources Malaysia (MOHR) official website
• The official Malaysia Gazette (Warta Kerajaan) for newly gazetted Orders

Staying informed through official channels ensures you are acting on accurate, legally binding information rather than media speculation.

Key Takeaways

• Malaysia’s minimum wage is RM1,700 per month (RM65.38/day for a 6-day week, RM8.72/hour), in effect since February 1, 2025.
• It applies to all private sector employees — Malaysian, permanent resident, and foreign workers alike.
• Domestic workers and registered apprentices are exempt.
• Daily minimums depend on your working days per week (RM65.38 for 6 days, RM78.46 for 5, RM98.08 for 4); the hourly minimum is RM8.72.
• Shift allowances, bonuses, overtime, and EPF/SOCSO contributions do not count toward meeting the minimum wage.
• Violations can be reported to JTKSM, with penalties of up to RM10,000 per employee per offence.
• Budget 2027 announced an increase to RM2,000 from June 2027, pending a new gazetted Order — check official MOHR sources for updates.