Malaysia is introducing new changes to its minimum wage policy effective February 1, 2025. These adjustments are guided by recommendations from the National Wages Consultative Council.
What is Changing in Malaysia's Minimum Wage?
From February 1, 2025, the monthly minimum wage will increase to MYR 1,700 per month for most businesses. This is equivalent to USD 380.91. This change applies specifically to companies that:
Employ five or more workers, or
Operate within professions classified under the Malaysian Standard Classification of Occupations (e.g., doctors, lawyers, engineers).
This minimum wage policy applies universally, regardless of the employment mode (full time or part-time), employee’s citizenship, or how employees are compensated, including piece rates, tonnage, tasks, trips, or commissions. However, the minimum wage increase does not apply to apprentices or domestic workers.
Daily Minimum Wage Breakdown
The new daily minimum wage rates are based on the number of working days per week:
Days Worked Per Week | Daily Rate (MYR) | Daily Rate (USD) |
|---|---|---|
6 | 65.38 | 14.65 |
5 | 78.46 | 17.58 |
4 | 98.08 | 21.98 |
Grace Period for Smaller Malaysian Businesses
For businesses with fewer than five employees (“smaller businesses”), the implementation of the new minimum wage is delayed until August 1, 2025. This transitional period aims to provide smaller enterprises with additional time to adapt to the wage increase.
Implications for Employers
Employers must prepare to align with the new minimum wage requirements by:
Reviewing and adjusting payroll systems to reflect the updated rates.
Communicating changes to employees to ensure transparency.
For smaller businesses, planning ahead for the August 2025 transition.
How Atlas Can Help
Navigating changes in wage policies can be complex, especially when operating in multiple jurisdictions. Atlas is here to support businesses in ensuring compliance with Malaysia's updated minimum wage regulations. Our global expertise in employment law, payroll management, and workforce compliance allows you to stay ahead of regulatory changes while focusing on your core business operations.
Whether you need assistance with payroll adjustments, employee communication, or strategic planning for transitions, Atlas provides the tools and guidance to simplify the process. Ensure your business remains compliant and well-prepared for the 2025 updates.