Starting from July 1, 2023, the minimum wage for employees in Malaysia has been raised from RM1,200 to RM1,500 per month. This increase applies to employers who have less than five employees, excluding those engaged in professional activities classified under the Malaysia Standard Classification of Occupations (MASCO) by the Ministry of Human Resources (known as “MASCO Employers”).
As a result of this adjustment, the minimum wage rates for employees across Malaysia have been standardized. Effective from July 1, 2023, the following are the minimum wage rates applicable:
- Monthly: RM1,500
- Hourly: RM7.21 (based on 8 working hours per day)
- Daily: RM57.69 (based on 6 working days per week)
- Daily: RM69.23 (based on 5 working days per week)
- Daily: RM86.54 (based on 4 working days per week)
It’s important to note that this minimum wage increase also applies to employees who are paid based on piece rate, tonnage, task, trip, or commission. Regardless of the method of payment, the monthly wages of these employees cannot be less than RM1,500.
Previously, the increase in minimum wage for employers with less than five employees (excluding MASCO Employers) had been postponed from January 1, 2023, to July 1, 2023. On the other hand, the minimum monthly wage for employees working for employers with five or more employees or those classified as MASCO Employers had already been raised to RM1,500 from May 1, 2022.