Anwar announces national minimum wage increase to RM1,700 starting February 2025
Sector-specific salary guidelines to be issued by Human Resources Ministry
SHAH ALAM - Finance Minister Datuk Seri Anwar Ibrahim has announced plans to raise the national minimum wage from RM1,500 to RM1,700 per month, effective from 1 Feb 2025.
This increase aims to improve the standard of living for the Malaysian workforce, as part of the broader economic restructuring initiatives under the Madani government.
When presenting Budget 2025, Anwar stressed that economic restructuring is only considered successful when citizens earn meaningful wages and salaries that allow them to live more comfortably.
He highlighted that the wage hike is a critical step towards this goal.
“The government has also decided to delay the implementation of the RM1,700 minimum wage for employers with fewer than five employees by six months, with the new date set for 1 Aug 2025,” he said.
In addition to the wage increase, the Human Resources Ministry will be issuing sector-specific starting salary guidelines for workers' reference.
“For example, Industrial and Production Technicians will have a starting salary of RM2,290, Mechanical Engineers will earn RM3,380 and Creative Content Design Professionals will begin at RM2,985.
“The government is also focused on the broader Progressive Wage Policy, which aims to reform the labour market and boost workers' earnings.
“The Progressive Wage Policy is part of the Madani government’s efforts to reform the labour market with the goal of increasing workers' incomes," he said.
The Progressive Wage Policy was piloted in June and will be fully implemented next year. With an allocation of RM200 million, it is expected to benefit 50,000 workers.
