Following the official implementation of the Minimum Wage Order last Saturday (Feb 1), about 4.37 million workers will see their minimum pay rise 13% to RM1,700 per month, from RM1,500 previously.

The hourly rate has also been increased from RM7.21 to RM8.72, giving part time workers, freelancers, and hourly based jobs slightly more earnings.

The wage increase applies to all professional sector employers regardless of workforce size and companies with five or more workers.

For businesses with fewer than five employees, the new rate will begin on August 1, allowing time for necessary adjustments.

Non-compliance is an offence. Employers may face penalties of up to RM10,000 per employee or imprisonment for five years.

This is actually the third time the minimum wage has been hiked in the past 5 years.

In 2020, the government increased the minimum pay to RM1,200, then again to RM1,500 in 2022, and finally RM1,700 in 2025. I take back my statement of wages in Malaysia being “stagnant”. Rather, the numbers have not been growing fast enough to keep up with inflation, because they were extremely low to begin with.

How are netizens reacting?

While some are relieved on the wage hike, others are saying that the increase is too minimal, especially when MPs are subsidized:

• RM2,500/month for entertainment

• RM1,500/month for travel

• RM400/day for attending parliamentary meetings

And so much more.

The Ministry of Human Resources warned that the minimum wage should not be treated as a benchmark for starting salaries.

Graduates and skilled workers should be paid according to their qualifications, skill level, and expertise.

Following this, the ministry has published starting salary guidelines for all employment sectors as a reference for workers and employers:

View the full list here: https://gajiprogresif.gov.my/assets2/media/Buku%20Panduan%20Dasar%20Gaji%20Progresif.pdf

FYI, if your current salary is lower (or if you know anyone who’s earning less) than the recommended pay, the government is providing incentives to employers to pay employees who are eligible:

• Entry Level employees (ie. those who are in their first year of working), an incentive of up to RM200 per month for 12 months.

• Non-Entry Level employees, an incentive of up to RM300 per month for 12 months.

This initiative is part of the Progressive Wage Policy (PWP), which underwent its pilot phase from June to September 2024. The program also provides training and courses for eligible employees and guarantees a 6% annual increase in basic salaries for Non-Entry Level workers.

The eligibility is based on a few criteria.

Since this policy is not mandated by law and only went through its pilot phase, employer participation is entirely voluntary. This means that if your employer has not applied for PWP, you will not receive any salary increment from the government.

However, if your employer has enrolled in PWP, you may receive a subsidy covering the difference—up to RM200 per month if you're new, or up to RM300 per month if you've been working for some time—based on your current salary level versus the published figures.

I think this is a good gauge on how much you SHOULD be earning for your first year. You can talk to your employer about the Progressive Wage Policy (PWP) to see if they have applied for it.

If they did not, then it may be time for you to switch to a higher paying job.

That said, quite a few people are questioning the validity of the numbers.

For starters, how could Lawyers earn only RM3,505 as their starting pay? How could Pharmacists earn less than those working in advertising and marketing?

And why is the starting salaries of biologists at RM3,700?

After reading more comments on Reddit, I found out that the recorded salaries are based on responses from companies, which >90% are SMEs.

For common professions like lawyers, pharmacists, and civil engineers, the larger sample size makes the salary data more accurate.

However, for specialized roles, the sample size is significantly smaller (Biologists for example), leading to inflated and less reliable salary figures.

What should I do to get the salary increment?

As I mentioned earlier, the Progressive Wage Policy (PWP) has already gone through its pilot stage. If your employer has applied and is eligible for incentives, you’ll likely qualify for a salary increment if your pay falls below the recommended guidelines.

What You Can Do:

• Check with Your Employer – Speak with your employer to see if they’ve registered for PWP. If they haven’t, you may not receive the government-backed salary adjustment.

• Enhance Your Skills & Value – Beyond PWP, the best way to secure a higher salary is to make yourself indispensable. Invest time in courses and skill development to improve what you do. Become the best in your field and make yourself an asset to your employer.

• Set & Exceed High KPIs – Set a challenging KPI for yourself and smash it.

• Now You Have the Power to Negotiate – Once you've proven your value, you'll have stronger leverage when asking for a higher salary.

• Move On When You Don’t Get a Healthy Increment – If your employer still refuses to offer a fair raise, it may be time to explore opportunities with a company that truly values your skills.

Listen to our recent discussion with Financial Experts Hann Liew and Sani Hamid on Achieving RM1 million in EPF, Job Hopping, and More:

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That’s all for this week’s newsletter!

Disclaimer: The information contained in this newsletter is for informational and educational purposes only. Nothing herein shall be construed to be financial, legal, or tax advice.