PUTRAJAYA: The Ministry of Human Resources (KESUMA) has confirmed that the RM1,700 minimum wage order will be fully enforced nationwide starting Aug 1, 2025.
This follows the end of a six-month deferment period granted to certain employers.
In a statement issued today, KESUMA clarified that the order applies to all employers, regardless of company size, and includes non-citizen employees and contract apprentices.
However, domestic workers remain exempt.
“Effective Aug 1, 2025, without exception, all employers, including those who previously benefited from the deferment period, must comply with the RM1,700 monthly minimum wage order,” the ministry stated.
Employers failing to comply face penalties under the National Wages Consultative Council Act 2011, including fines of up to RM10,000 per affected worker.
Repeat offenders may be fined up to RM20,000 or face imprisonment for up to five years.
KESUMA also urged businesses to adopt the voluntary Progressive Wage Policy (PWP), which links salary increments to productivity and skills.
“Through the PWP, employers have the opportunity to raise employees’ incomes based on productivity, skills, and work contributions, while also benefiting from targeted cash incentives provided by the government,” the statement added.
Workers or employers seeking clarification can lodge complaints with the Department of Labour or visit KESUMA’s official websites for details on the minimum wage and PWP. – Bernama
