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The full implementation of Malaysia's Minimum Wage Order (PGM) 2024, which sets the monthly rate at RM1,700, is set to come into full effect nationwide on 1 August
This mandate will apply to all employers, regardless of the number of workers they employ.
The Human Resources Ministry called on all employers to re-evaluate their company's salary structures to ensure that no employee receives a basic salary below the stipulated minimum rate.
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Image via iPrice Group/PexelsThe ministry also said the new minimum wage rate was initially announced in Budget 2025 and partially enforced on 1 February
The initial enforcement only applied to employers with five or more employees, as well as those engaged in professional activities classified under the Malaysia Standard Classification of Occupations (MASCO) 2020.
Employers who fail to comply with the Minimum Wage Order can be penalised under the law
The ministry stressed that non-compliance constitutes a serious legal offence under the National Wages Consultative Council Act 2011 (Act 732).
If convicted, employers face fines of up to RM10,000 for each affected employee. An additional fine of RM1,000 will be levied per day if the offence persists after conviction.
For repeat offences, penalties can escalate significantly, potentially reaching a maximum fine of RM20,000 or up to five years' imprisonment.
