The new minimum wage rate order of RM1,700 per month will come into effect tomorrow, February 1, 2025. A total of 4.37 million workers will enjoy the benefits of this new minimum wage in line with the government's agenda that emphasizes the well-being of the people to ensure sustainable economic growth.
In a statement, the Ministry of Human Resources (KESUMA) stressed that employers must comply with this Minimum Wage Order and ensure that their workers receive a basic salary of not less than RM1,700 per month. Failure to do so is an offence and can be fined under the National Wage Legislative Council Act 2011 (Act 732).
This implementation also involves employers who employ five or more workers as well as employers who carry out professional activities, regardless of the number of workers employed. Meanwhile, for employers who employ less than five workers, the effective date will begin on August 1, 2025.
Several initiatives are also provided to employers and workers to ensure that this transition can run smoothly. Among them are engagement sessions held for employers to understand the implementation of the Minimum Wage Order. A complaint channel is also provided for employees facing issues of non-compliance with this order. In addition, cooperation is also formed between relevant agencies in an effort to provide guidance and assistance to companies that need adjustments in their salary structure.