NEW: Minimum Wage 2025 - RM1700

Posted on February 4, 2025 by E2 Consultants

The new minimum wage for 2025 is set at RM1700. Employers should review budgets, compliance, and workforce planning.

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.

Total no. of employees	Implementation date	Minimum wage rate
5 or more employees	1st February 2025	Application of new minimum wage rate of RM1700 per month
Less than 5 employees	1st August 2025

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.NEW: Minimum Wage 2025 - RM1700