Minimum wage throughout Malaysia aligned from 1 July 2023

With the increase in minimum wage for employees from RM1,200 to RM1,500 per month from 1 July 20231 for employers who employ less than five employees other than an employer who carries out a professional activity classified under the Malaysia Standard Classification of Occupations2 (MASCO) as published by the Ministry of Human Resources (‘MASCO Employer’), the minimum wage for employees throughout Malaysia has now been aligned.3
Accordingly, as from 1 July 2023, the minimum wage rates payable to an employee throughout Malaysia are as follows:
Minimum wages rate
Monthly Daily Hourly
  Number of working days in a week  
RM1,500 6 5 4 RM7.21
  RM57.69 RM69.23 RM86.54  
For an employee who is not paid basic wages but is paid wages based only on piece rate, tonnage, task, trip or commission, the rate of monthly wages payable to that employee shall not be less than RM1,500.
The increase in minimum wage for employees whose employer (other than a MASCO Employer) employs less than five employees an employer had previously been deferred from 1 January 2023 to 1 July 2023 whereas the minimum monthly wage of employees whose employers employ five or more employees or are MASCO Employers (regardless of the number of employees employed) had been increased to RM1,500 from 1 May 2022.
Our previous alerts on the increase in minimum wage can be accessed here and here.
Alert by Teng Wei Hun (Senior Associate) of the Employment Law Practice of Skrine.

3 The Minimum Wages Order 2022 [P.U.(A) 140/2022] does not apply to a domestic servant as defined under section 2(1) of the Employment Act 1955, section 2(1) of the Sabah Labour Ordinance and section 2(1) of the Sarawak Labour Ordinance.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact