Minimum wage in Malaysia 2026
Baca dalam Bahasa Malaysia: gaji minimum 2026
The minimum wage in Malaysia is RM 1,700.00 a month. It has applied to employers with five or more workers since 1 February 2025 and to every employer since 1 August 2025, under the Minimum Wages Order 2024. Domestic workers are not covered.
After EPF, SOCSO and EIS, a worker on the minimum wage takes home RM 1,501.45 a month. No income tax (PCB) is deducted at this level.
Budget 2027 raises the minimum wage to RM2,000 a month from June 2027. Until the new Order takes effect, RM1,700 is the legal minimum.
Monthly, daily and hourly rates
Rates as printed in the Minimum Wages Order 2024. Part-time and daily-paid workers must receive at least the hourly or daily rate. The minimum applies to basic wages, before allowances and overtime.
Take-home pay on the minimum wage
Estimate only. Your employer's payslip and LHDN remain authoritative.
Work out any salary with the salary calculator.
Minimum wage 2027: RM2,000 from June 2027
Tabling Budget 2027 on 9 October 2026, Prime Minister Anwar Ibrahim announced that the minimum wage will rise from RM1,700 to RM2,000 a month from June 2027. As reported, micro, small and medium enterprises with annual sales below RM50 million will be exempt from the new rate to give them time to adjust, and a separate minimum of RM2,500 a month is to be introduced for semi-skilled workers and graduates.
The new rate takes legal effect through a new Minimum Wages Order under the National Wages Consultative Council Act 2011. Until that Order is gazetted and in force, RM1,700 stays the legal minimum, and the Order will set the exact hourly and daily rates and the exemption rules. Before the Budget, the MTUC (Malaysian Trades Union Congress) had proposed RM3,100, which employers' groups including FMM opposed.
What RM2,000 means for take-home pay
| Now RM1,700 | From June 2027 RM2,000 | |
|---|---|---|
| Gross | 1,700.00 | 2,000.00 |
| EPF | 187.00 | 220.00 |
| SOCSO | 8.25 | 9.75 |
| EIS | 3.30 | 3.90 |
| PCB | 0.00 | 0.00 |
| Net pay | 1,501.45 | 1,766.35 |
Minimum wage history
Employers
Paying less than the minimum wage is an offence under the National Wages Consultative Council Act 2011, with fines of up to RM10,000 for each employee. On RM 1,700.00 the employer also pays RM 221.00 EPF, RM 28.85 SOCSO and RM 3.30 EIS, for a total cost of RM 1,953.15 a month.
Questions
What is the minimum wage in Malaysia in 2026?
RM 1,700.00 a month, or RM 8.72 an hour, for all employers. It took effect on 1 February 2025 for employers with five or more workers and on 1 August 2025 for everyone else.
Is the minimum wage going up to RM2,000?
Yes. Budget 2027, tabled on 9 October 2026, raises it to RM2,000 a month from June 2027. Until the new Minimum Wages Order takes effect, the legal minimum is RM1,700.
Who is exempt from the RM2,000 minimum wage?
As announced in Budget 2027, micro, small and medium enterprises with annual sales below RM50 million are exempt from the new rate for now. The exact conditions will be in the new Minimum Wages Order.
Is the minimum wage RM3,100?
No. RM3,100 was a proposal by the MTUC before Budget 2027. The announced new rate is RM2,000 from June 2027.
Does the minimum wage include allowances?
No. The minimum applies to basic wages. Allowances, overtime and other payments come on top.
Do foreign workers get the minimum wage?
Yes. The Order covers foreign workers. Domestic workers are the main group excluded.
What is the lowest salary a worker can be paid in Malaysia in 2026?
RM 1,700.00 a month for a full-time worker, including general and factory labour. Paying less is an offence; only domestic workers are excluded from the Order.
What is the minimum rate for part-time work in 2026?
RM 8.72 an hour, the hourly equivalent of the RM1,700 monthly minimum. Daily-paid workers get at least RM 65.38 a day on a 6-day week.