RM1,700 Minimum Wage Order To Be Fully Enforced On Aug 1
In today's statement, KESUMA announced that the order will apply to employers nationwide, regardless of the number of employees hired, following the end of the six-month deferment period on July 31.
'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.
'This includes non-citizen employees and contract apprentices, but does not apply to domestic workers,' read the statement.
The ministry reminded employers to review their company's wage structure to ensure no employee receives a basic salary below the stipulated minimum rate, and to progressively adjust operations by focusing on productivity enhancement and employee skills training.
KESUMA also warned that failure to comply with the order is an offence under the National Wages Consultative Council Act 2011, which carries a fine of up to RM10,000 for each affected employee, with an additional penalty of RM1,000 for each day the offence continues after conviction. For repeat offences, the maximum penalty may reach RM20,000 or imprisonment for up to five years.
The ministry also encouraged employers to adopt the voluntary progressive wage policy (PWP) that serves to complement the implementation of the minimum wage order.
'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.
'This not only helps companies retain highly skilled workers but also strengthens long-term competitiveness in an increasingly challenging labour market,' it added.
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