Minimum Wage in Malaysia 2026: RM1,700 Monthly, Daily and Hourly Rates (and the RM2,000 Plan)

The minimum wage in Malaysia is RM1,700 a month (RM8.72 an hour) for every employer, whatever its size, under the Minimum Wages Order 2024. Budget 2027 announced a rise to RM2,000 from June 2027, but that isn't law yet, so RM1,700 is the figure to check your gaji against today.

This guide shows the official monthly, daily and hourly rates, what counts towards the minimum (only basic pay), how to check a part-time, daily-paid or commission-only wage, and what the RM2,000 rate would mean for take-home pay and employer cost.

Minimum wage rates in 2026 (Minimum Wages Order 2024)

The Order (P.U.(A) 376/2024) sets one rate for the whole country.

The daily rates are just the monthly rate spread over a year of working days: RM1,700 × 12 ÷ 52 = RM392.31 a week, then ÷ 6, 5 or 4 days.

When it started:

• 1 February 2025: employers with five or more workers, and any employer doing a professional activity listed under MASCO, whatever its headcount.
• 1 August 2025: all other employers (fewer than five workers). Between February and July 2025 they could still pay RM1,500 a month, the old rate.

So from 1 August 2025 the RM1,700 rate applies to every covered employer in Malaysia.

Minimum wage means basic pay only

This is the part people most often get wrong. Under section 2 of the National Wages Consultative Council Act 2011 (Act 732), "minimum wages" means basic wages. The labour department's explanation of the Order is just as clear: basic pay, not including allowances, overtime, incentives or any other extra payment.

So a payslip showing basic RM1,500 + fixed allowance RM300 = RM1,800 gross is below the minimum wage, even though the total is above RM1,700. The basic pay itself must be at least RM1,700.

If your contract says a basic wage below the minimum, section 24 of Act 732 replaces it with the minimum rate automatically. You can't sign away the minimum wage. And if your contract already gives a basic wage above the minimum, section 24 also says it can't be reduced to a lower rate.

Who is covered (and who isn't)

The Order covers private-sector employees in general, including foreign workers. The Order only excludes domestic servants (as defined in the Employment Act 1955 and the Sabah and Sarawak Labour Ordinances).

Apprentices used to be excluded. Since 1 August 2025, the National Wages Consultative Council (Amendment) Act 2025 extends the minimum wage to apprenticeship contracts (6 to 24 months of systematic training for a trade).

The JTK Sarawak leaflet on the Order describes coverage as private-sector workers, and lists statutory-body and local-authority employees in Peninsular Malaysia as not covered.

Daily, hourly and commission pay: how to check

Daily-paid workers. Multiply the daily rate for your working pattern by the days you actually worked. A 6-day-week worker who works 26 days earns at least RM65.38 × 26 = RM1,699.88, about the same as the monthly rate.

Part-time and hourly workers. Use RM8.72 for every hour worked. There's no separate "part-time minimum wage".

Piece-rate, task, trip, tonnage or commission only. If you get no basic wage at all and are paid only on output or commission, the Order says your monthly pay must still be at least RM1,700. If a slow month leaves you short, your employer has to top it up.

Worked example 1: full-time on RM1,700

Aisyah is a Malaysian citizen under 60, working full-time on basic pay of RM1,700 with no allowances. KiraBoss uses the KWSP Third Schedule and PERKESO's published tables:

• Gaji pokok: RM1,700.00
• EPF (KWSP) employee 11%: −RM187.00
• SOCSO (PERKESO) employee, Category 1: −RM8.25
• EIS (SIP) employee: −RM3.30
• PCB: RM0 at this pay level
• Take-home: RM1,501.45

Her employer pays on top of her gaji:

• EPF employer 13%: RM221.00
• SOCSO employer: RM28.85
• EIS employer: RM3.30
• Total cost to employer: RM1,953.15 a month

You can check your own numbers in the salary calculator. For how each deduction is worked out, see EPF vs SOCSO vs EIS.

Worked example 2: hourly, daily and commission-only

Part-timer. Ravi works 4 hours a day, 20 days a month at a café. His minimum pay is 80 hours × RM8.72 = RM697.60 for the month. If he's paid RM8 an hour (RM640), he's short RM57.60.

5-day-week daily worker. Mei Ling is paid by the day and works a 5-day week. Her minimum is RM78.46 a day. In a month where she works 22 days, that's at least RM78.46 × 22 = RM1,726.12.

Commission-only sales. Faizal has no basic pay and earns only commission. In a quiet month his commission comes to RM1,450. Because his monthly pay must be at least RM1,700, his employer has to pay RM250 more that month.

Worked example 3: what changes at RM2,000

The Budget 2027 speech (9 October 2026) says the minimum wage will rise from RM1,700 to RM2,000 from June 2027. MSMEs with annual sales below RM50 million will be exempted. Until a new Minimum Wages Order is gazetted, treat this as announced, not in force. The exact start date, the exemption rules and the new daily and hourly rates will be in that Order.

If Aisyah's basic pay rises to RM2,000:

• EPF employee: RM220.00 (employer RM260.00)
• SOCSO employee: RM9.75 (employer RM34.15)
• EIS: RM3.90 each
• Take-home: RM1,766.35, up RM264.90 a month
• Employer cost: RM2,298.05, up RM344.90 a month

The gross pay rise is RM300, but take-home goes up by less, because EPF, SOCSO and EIS all rise with the wage. Employers should budget for the full RM344.90, not just the RM300.

Budget 2027 also mentions a RM2,500 minimum wage for semi-skilled workers and graduates as part of a wider wage framework. No start date or legal detail has been published yet, so don't plan around it.

Common mistakes

• Counting allowances towards RM1,700. Only basic pay counts. Fixed allowances, overtime and incentives are on top.
• Using the old RM1,500 rate. That ended on 31 July 2025 for small employers and on 31 January 2025 for everyone else.
• Treating RM2,000 as already in force. It's a Budget 2027 announcement for June 2027, and some employers will be exempt.
• Prorating with the wrong formula. For a part month or unpaid leave, use the Employment Act s.18A formula in our prorated salary guide, not a lower "minimum".
• Thinking foreign workers can be paid less. The Order only excludes domestic servants.

What to do if you're paid below the minimum

1. Check the payslip: basic pay alone must be at least RM1,700 (or RM8.72 × hours, or the daily rate × days).
2. Raise it with HR in writing and keep copies of payslips and your contract.
3. If it isn't fixed, complain to the Jabatan Tenaga Kerja (JTK): JTKSM in the Peninsula, JTK Sabah or JTK Sarawak.

Under Act 732, an employer who doesn't pay the minimum wage commits an offence, with a fine of up to RM10,000 per employee (s.43). The court can also order the employer to pay the shortfall and arrears (s.44). Continuing offences can mean up to RM1,000 a day (s.46). Repeat offences can mean up to RM20,000 or up to 5 years' jail (s.47).