99.5% compliance of minimum wage
PETALING JAYA: The new minimum wage of RM1,700, which came into effect on Feb 1, has seen almost full compliance from employers, says the Human Resources Ministry.
'According to the Labour Department, the employer compliance rate with the Minimum Wage Order (MWO) 2024 reached 99.5% as of March 2025,' it said.
Up to 4.37 million workers in Malaysia are estimated to have benefited from the RM200 increase from the previous minimum wage of RM1,500.
The government's efforts to improve wages have seen some positive developments, the ministry noted.
'The latest median monthly wage has surpassed the RM3,000 threshold for the first time,' the ministry informed Sunday Star in a statement.
The median monthly wage was RM2,745 in June 2024, according to data from the Statistics Department.
In 2018, Bank Negara recommended a living wage of RM2,700 for a single individual residing in an urban area; RM4,500 for an urban couple without children, and RM6,500 for those with two children.
Meanwhile, the EPF's Belanjawanku 2024/2025 Expenditure Guide estimated a minimum monthly budget of RM1,970 to RM2,800 for singles living in urban areas such as Kuala Lumpur, RM4,970 for married couples without children and RM7,440 for married couples with two children.
The Belanjawanku Expenditure Guide, which was jointly developed by the Employees Provident Fund and Universiti Malaya's Social Wellbeing Research Centre, provides estimates of minimum monthly expenses needed for a good standard of living nationwide.
However, many workers say they are still struggling to deal with the rising cost of living.
For 26-year-old Muhd Nazrin Mohd Zain, who works as a warehouse assistant and packer in Petaling Jaya, his new salary of RM1,700 is 'absolutely not enough', explaining that after deductions for EPF and Socso, his actual take-home pay is around RM1,450.
'As soon as I get paid, the money goes straight to fixed expenses, leaving almost nothing.
'Sometimes, it's not even enough. I often rely on my wife to cover the shortfall,' he said.
In Sabah, some say the extra RM200 has not made much of a difference to their lives.
Julie Aley, 35, who works as an operation coordinator for a tour company in Kundasang, said RM1,700 may only be enough for single people with minimal commitments.
'If you have commitments other than yourself, of course this is not enough and does not make any difference,' she said.
Julie urged the government to look into maintaining the prices of groceries and other necessities to improve the lives of the people.
'Control the price. No point increasing the minimum wage if goods are doubling in price as well,' she said.
The government is already introducing various measures to address the rising cost of living.
On Labour Day, for example, Prime Minister Datuk Seri Anwar Ibrahim announced the Madani Workers' Card initiative, which will see one million union members receiving discounts of up to 30% on essential goods and services from over 100 companies.
Noting the people's concerns over the adequacy of the minimum wage, especially in light of the rising living costs, the Human Resources Ministry said it is also crucial to consider the broader economic landscape, including the potential impact of increased wages on businesses, particularly small and medium enterprises (SME), and the overall competitiveness of the country.
This is especially vital in these uncertain economic times due to global instability and the possibility of a trade war.
'Hence, under the National Wages Consultative Council Act 2011, the minimum wage is reviewed at least once every two years, taking into account both the cost of living and the country's economic conditions,' it said.
The implementation of the current RM1,700 minimum wage remains non-negotiable, as the ministry stressed that not complying with the MWO is an offence under the National Wages Consultative Council Act 2011 (Act 732), and can result in fines.
At the same time, the ministry said it advocates for the Progressive Wage Policy and initiatives aimed at enhancing skills training, which will improve workers' overall income and career opportunities beyond the minimum wage.
'It is important to note that the minimum wage should not be seen as the standard for entry- level salaries, particularly for graduates. Instead, it should reflect the skills and experience of each individual,' it said.
Currently, the MWO only applies to employers with five or more employees and those engaged in professional activities as classified under the Malaysia Standard Classification of Occupations, regardless of the number of employees.
Those with fewer than five employees will see MWO 2024 take effect on Aug 1.
'This phased approach strikes a balance between ensuring that workers receive fair wages and helping microbusinesses adjust responsibly, so they could remain sustainable while meeting their obligations,' the ministry said.
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