The government is reviewing Malaysia’s RM1,700 minimum wage, with a decision on whether to maintain or increase it to be made by the National Wages Consultative Council.
Human Resources Minister Datuk Seri R. Ramanan said the review would look at key economic indicators, including the poverty line, median wage, inflation, labour productivity and unemployment rate.
Review to consider workers’ needs and employers’ ability to pay
Ramanan said these factors would help determine workers’ basic needs while also taking into account employers’ financial capacity.
“The ministry has not conducted any specific study on a living wage yet, although Bank Negara Malaysia introduced the concept in 2018, estimating that the living wage in Kuala Lumpur, for example, was RM2,700 for a single person,” he said, as quoted by Utusan Malaysia.
He added that the Department of Statistics Malaysia’s basic expenditure measure provides a more detailed picture by considering location, demographics and actual household spending patterns.
Current RM1,700 wage took effect in 2025
The RM1,700 minimum wage came into force in August 2025 and applies to workers nationwide, except domestic workers and apprentices.
The review is also in line with the 13th Malaysia Plan, which outlines labour market reforms aimed at accelerating wage adjustments through minimum wage reviews that take living costs into account.
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