Latest Gaji Minimum Malaysia in 2025 for HR and Business Owners

One of the most important responsibilities is making sure your employees receive at least the minimum wage set by the government.

Not only help them to have funds to live, but you can also avoid penalties and keep your workplace fair.

That’s why it’s important for you to understand how the minimum wage works, who it applies to, and when it changes, so you can manage your payroll the right way. Check the explanation below.

What is Gaji Minimum, or the Minimum Wage in Malaysia?

Minimum wage (or gaji minimum) is the lowest monthly salary an employer must legally pay to their workers.

This amount is set by the government to make sure employees earn a basic income that supports their daily needs. It applies across industries and job types, unless stated otherwise.

The minimum wage policy in Malaysia is guided by the National Wages Consultative Council Act 2011. It is enforced under the Minimum Wages Order, which the government updates based on the country’s economy and living costs.

Current Minimum Wage Rates in Malaysia

Starting 1 February 2025, the minimum wage in Malaysia has officially increased to RM1,700 per month. This new rate applies to:

All employers with five or more employees
Employers involved in professional activities, regardless of how many staff they employ

This adjustment is based on the Perintah Gaji Minimum 2024 and replaces the previous national minimum wage of RM1,500. It reflects the government’s efforts to support fairer pay and address the rising cost of living for Malaysian workers.

For smaller businesses, specifically those with fewer than five employees and not involved in professional sectors, the RM1,700 wage will be enforced slightly later, starting 1 August 2025.

Category	Minimum Monthly Wage	Effective Date
Employers with ≥ 5 employees	RM1,700	1 February 2025
Employers in professional activities (any size)	RM1,700	1 February 2025
Employers with < 5 employees (non-professional)	RM1,700	1 August 2025

The RM1,700 rate applies uniformly across all states, including Peninsular Malaysia, Sabah, Sarawak, and Labuan.

Employers are strongly advised to review their current employment contracts and payroll systems to stay compliant with this update.

The new structure affects both local and foreign employees who work under a contract of service.

History of Minimum Wage in Malaysia

Malaysia introduced the national minimum wage policy in 2013 to help raise the income levels of workers and reduce income inequality.

Since then, the minimum wage has been revised several times to reflect economic changes, inflation, and the cost of living.

The table below shows how the minimum wage has increased over the years based on official government updates:

Year	Peninsular Malaysia	Sabah, Sarawak, Labuan	Remarks
2013 (Jan)	RM900	RM800	First implementation under Minimum Wages Order 2012
2016 (July)	RM1,000	RM920	Revised under Minimum Wages Order 2016
2019 (Jan)	RM1,100	RM1,100	Standardised across all regions
2020 (Feb)	RM1,200 (57 cities)	RM1,100	Applied only in major city councils
2022 (May)	RM1,500	RM1,500	Across all regions and sectors
2025 (Feb/Aug)	RM1,700	RM1,700	Effective 1 Feb for most employers, 1 Aug for microenterprises

Who is Eligible for Minimum Wage in Malaysia?

According to the latest government guidelines, all employees who work under a contract of service are eligible to receive the minimum wage. This applies whether the employee is:

Working full-time or part-time
On probation
A local Malaysian citizen or a foreign worker.

It doesn't matter what industry the employee is in, or whether the company is big or small.

As long as the person is officially employed under a service contract and the company has at least five employees, the minimum wage rule applies.

This means HR teams and employers need to make sure every staff member listed on payroll is paid according to the correct minimum wage, based on their region.

Who is Exempted from Receiving Minimum Wage?

While most employees in Malaysia are covered under the minimum wage policy, there are a few clear exceptions stated by the government.

Apprentices

Apprentices who are enrolled in official training programs that the Director General of Labour has approved are not entitled to the minimum wage.

These individuals are usually undergoing structured learning and may receive a different form of allowance during their training period.

Domestic workers

Housemaids, personal drivers, and live-in helpers are also currently excluded from the minimum wage coverage.

However, this category is often subject to review, and employers are still encouraged to compensate these workers fairly.

Know which roles are exempt so you don’t accidentally underpay someone who should be covered. Always refer to the latest guidelines by the Ministry of Human Resources when hiring or renewing contracts.

Who is Responsible for Complying with Minimum Wage Laws?

Every employer in Malaysia is responsible for following the minimum wage law. The law applies as long as there is at least one employee under a contract of service.

The responsibility doesn’t stop at the owner. HR departments and payroll teams also play a key role. They need to make sure that the monthly pay for every eligible employee meets or exceeds the current minimum wage rate. This includes checking work hours, contract terms, and any deductions that could affect the final pay.

If you're unsure whether your salary structure meets the latest wage standards, it’s best to review your payroll system regularly and seek clarification from the Department of Labour if needed.

Compliance with Malaysia’s Minimum Wage Law

For businesses, compliance with minimum wage law is a must. The penalties for non-compliance are serious and can lead to financial and legal consequences.

Offence	Penalty
First Offence	Fine not exceeding RM10,000 per employee. The court may also order the employer to pay the wage shortfall.
General Penalty	Fine not exceeding RM10,000 for each offence.
Penalty for Continuing Offence	Daily fine not exceeding RM1,000 for each day the offence continues after conviction.
Penalty for Repeat Offence	Fine not exceeding RM20,000 or imprisonment for up to 5 years.

Tips to stay on the right side of the law:

Review and update employment contracts.
Adjust payroll systems to reflect the correct wage rates and effective dates.
Apply the right timing based on company size and type of work.

How Often is Malaysia’s Minimum Wage Reviewed?

The minimum wage isn’t fixed forever. It is typically reviewed every two years by the National Wages Consultative Council (NWCC).

The Council takes into account the country’s economic situation, inflation rate, and feedback from employers, workers, and industry stakeholders.

Sometimes, the review may be delayed or adjusted based on national priorities or economic conditions, such as during a pandemic or financial downturn.

However, employers should always be ready for changes and keep an eye out for updates from the Ministry of Human Resources.

FAQs

What is the latest minimum wage in Malaysia?

As of 1 February 2025, the latest minimum wage in Malaysia is RM1,700 per month. This applies to:

Employers with five or more employees.
Employers involved in professional activities, regardless of the number of employees.

For employers with fewer than five employees (who are not involved in professional activities), the new minimum wage of RM1,700 will come into effect on 1 August 2025. This update was announced by the Ministry of Human Resources and aims to improve the income level and quality of life for Malaysian workers.

Does minimum wage apply to foreign workers?

Yes, the minimum wage policy covers both local and foreign workers who are employed under a contract of service. Employers must pay foreign employees at least the same minimum wage as local staff.

Can an intern be paid below minimum wage?

Interns who are hired under internship or industrial training programs, especially those who are students, are not always covered under the minimum wage regulation. However, it is still a good practice to offer fair allowances.

What are the consequences of not paying minimum wage?

If an employer fails to pay the minimum wage in Malaysia, they can face serious legal consequences under the National Wages Consultative Council Act 2011 (Act 732).

Offence	Penalty
First Offence	A fine not more than RM10,000 per employee. The court may also order the employer to pay the difference between the employee’s actual basic salary and the minimum wage.
General Offence	A fine not more than RM10,000 for each violation.
Ongoing Violation After Conviction	A daily fine not exceeding RM1,000 for each day the offence continues.
Repeat Offence	A fine not more than RM20,000 or imprisonment not exceeding 5 years.

Employers are encouraged to review and update their payroll systems and employment contracts to comply with the latest minimum wage order.

How can I stay updated on wage changes?

Employers can follow updates from the Ministry of Human Resources, the Department of Labour (JTK), and refer to the official Federal Government Gazette. These channels provide timely announcements on wage reviews and enforcement dates.

Looking for Someone Who Really Fits Your Team?

We’ll help you find the right people who vibe with your goals and grow with you.

Post your job on Maukerja, Ricebowl, and Epicareer with AJobThing today.