Group turnover to determine coverage of RM2,000 minimum wage
Foreign workers employed by firms subject to the higher rate will also be covered, while exempted employers must continue paying RM1,700 per month.
Corporate groups will have their combined turnover assessed to determine whether they fall under the RM2,000 monthly minimum wage from June 2027, Human Resources Minister Datuk Seri R Ramanan said. Subsidiaries will not be assessed separately from their holding company.
Speaking at a press conference, Ramanan said the higher wage would extend to foreign workers at employers covered by the increase, citing International Labour Organization standards. Malaysia’s current minimum wage arrangements already include foreign workers.
Micro, small and medium enterprises recording annual sales below RM50 million will be exempted, allowing them time to adapt. Ramanan said the monthly minimum for exempted employers would stay at RM1,700.
The RM300 increase was announced by Prime Minister Datuk Seri Anwar Ibrahim. Government estimates put the number of workers in Malaysia covered by the new rate at over four million.
Ramanan said the decision took account of employers’ ability to pay, possible inflationary pressures and economic consequences. He said information from ministries, industries and employers had been assessed, and smaller businesses needed time to adjust gradually.
