Govt reviewing RM1,700 minimum wage

 HR minister says the basic needs of workers and the financial capacity of employers will be taken into account.

Human resources minister R Ramanan said the minimum wage review will consider inflation, labour productivity and the unemployment rate.

PETALING JAYA:

The government is reviewing the RM1,700 minimum wage, with a final decision on maintaining or raising the amount to be made by the National Wages Consultative Council.

Human resources minister R Ramanan said the review would consider basic economic indicators such as the poverty line and median wage to gauge the basic needs of workers and the financial capacity of employers.

He said the review would also consider inflation, labour productivity and the unemployment rate, Utusan Malaysia reported.

“The ministry has not conducted any specific study on a living wage yet, although Bank Negara Malaysia introduced the concept in 2018, estimating that the living wage in Kuala Lumpur, for example, was RM2,700 for a single person.

“The statistics department’s basic expenditure of decent living provides a more granular measure based on location, demographics and actual household spending patterns.

“The 13th Malaysia Plan also outlines strategic labour market reforms, including accelerating wage adjustments through minimum wage reviews that take into account the living wage,” he was quoted as saying.

The RM1,700 minimum wage has been in force since August 2025 and applies to all workers in Malaysia except for domestic workers and apprentices. - FMT