As part of our Prime Minister's budget presentation at Parliament today, a new minimum wage has been announced for the private sector for 2025.

Please be informed that the new minimum wage rate shall be RM1700 per month (an increase of RM200 from the current RM1500 per month) which also amounts to a 13.3% adjustment since it's last implementation.

We encourage employers to take note of this in view of the cost impact to businesses.

Amongst some immediate steps that can be taken by employers would include:

• Review your internal budget for FY2025 and make the necessary adjustments. Please take note that the minimum wage rate will also impact ORP calculations and other associated cost, including the possibility of a wage adjustment to other employees in similar categories

  
  

• Informing all employees that this announcement is not be effective immediately

  
  

• Ensure that the company will take steps to be fully in compliance with any changes required by law

  
  

• Manage vendors and contractor for services in ensuring compliance or make any necessary changes to current terms and conditions of agreement, i.e. adjustment of fees, etc.

  
  

• Consult with trade unions or make necessary changes to collective bargaining

  
  

Our consultants are available for private consulting sessions specifically for this purpose as we aim to provide you with useful insights and best practices in the implementation and communication of the new minimum wage rate.

Kindly be in touch with us for further assistance.