New RM1,700 minimum wage from February 2025

BUDGET 2025 | The national minimum wage will be increased from RM1,500 to RM1,700 beginning February next year.

Finance Minister Anwar Ibrahim said this was because any economic restructuring plans will only be deemed successful if they translate into meaningful income for the people.

“Therefore, the government has agreed to increase the minimum wage from RM1,500 to RM1,700, effective Feb 1, 2025,” said Anwar when tabling Budget 2025 in the Dewan Rakyat today.

However, he said employers with fewer than five workers will be allowed to postpone paying the new minimum wage for six months and only begin in August 2025.

Starting salary guideline

Anwar added that the Human Resources Ministry will also publish starting salary guidelines for all employment sectors for employee reference.

For example, the starting salary for industrial and production technicians (RM2,290), mechanical engineers (RM3,380) and creative content designer professionals (RM2,985) are clear.

"Furthermore, the Progressive Wage Policy is the Madani government's effort to reform the labour market to increase workers' income.

"This policy was implemented on a pilot basis last June and will be fully implemented next year. The Progressive Wage Policy has been allocated RM200 million and will benefit 50,000 workers," he added.

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