Published On: 30/07/2025By

RM1,700 Minimum Wage to Be Fully Enforced Nationwide Starting 1 August 2025

Reminder for All Employers: Final Phase of Minimum Wages Order 2024 Implementation

No More Deferments for Small Employers, Says Human Resources Ministry

According to a report by The Star on July 22, 2025, the 2024 Minimum Wage Order will be fully enforced nationwide from 1 August 2025, as announced by the Ministry of Human Resources (Kesuma). All employers, regardless of business size or sector, will be required to comply with the new RM1,700 monthly minimum wage, marking the end of the six-month deferment previously granted to small employers.

Key Highlights

✅ Full Enforcement Begins 1 August 2025

Starting 1 August 2025, the RM1,700 minimum monthly wage will apply without exception to:

  • All employers across Malaysia, regardless of the number of employees

  • Both local and non-citizen employees, including contract apprentices

The deferment period for employers with fewer than five employees ends on 31 July 2025. From August onwards, all companies must comply with the Minimum Wages Order 2024 [P.U.(A) 376/2024].

❌ Exclusion

The minimum wage requirement does not apply to domestic workers.

Employer Responsibilities

Kesuma has urged all employers to take the following actions immediately:

  • 🔍 Review wage structures to ensure no employee earns below RM1,700 per month.

  • ⚙️ Update payroll systems and employment contracts accordingly.

  • 📈 Focus on productivity and employee skills development to sustain wage increases.

Penalties for Non-Compliance

Failure to comply is a serious offence under the National Wages Consultative Council Act 2011. Penalties include:

  • Fine up to RM10,000 per employee

  • Additional RM1,000 per day for continued non-compliance after conviction

  • For repeat offences:
    – Up to RM20,000 in fines
    – Or imprisonment of up to five years

Employers are strongly advised to take proactive steps to avoid enforcement action and legal consequences.

Encouragement to Adopt Progressive Wage Policy (PWP)

Kesuma also encouraged employers to voluntarily participate in the Progressive Wage Policy (PWP) — a government initiative aimed at rewarding employees based on productivity, skills, and contribution to the business.

Participating employers may benefit from targeted government incentives, while also enhancing their ability to attract and retain skilled talent in a competitive labor market.

File Complaints or Seek Guidance

If employees or the public wish to report non-compliance with the Minimum Wages Order, they may do so through the Department of Labour nationwide, or via Kesuma’s official website.

(Source: RM1,700 monthly min wage to be fully implemented from Aug 1)

Ensuring Compliance with Confidence: How Pandahrms Can Help

Pandahrms, as an all-in-one HR and payroll management system, is well-equipped to support businesses through this transition. Our platform helps employers:

  • ✅ Automate payroll calculations based on the latest statutory requirements

  • ✅ Customize salary components and ensure compliance with minimum wage thresholds

  • ✅ Generate and store employment contract addendums reflecting updated wages

  • ✅ Maintain proper documentation for audit and inspection readiness

  • ✅ Streamline HR operations to free up time for business growth and employee development

For businesses—especially SMEs—navigating wage adjustments, Pandahrms provides the tools to implement changes accurately, efficiently, and in full compliance with Malaysian labor laws.

Stay Compliant, Avoid Penalties

Failure to comply with the Minimum Wage Order may result in severe penalties, including fines of up to RM10,000 per employee and even imprisonment for repeat offences.

With Pandahrms, you can ensure your payroll system reflects the new RM1,700 minimum wage and that all employee records are up-to-date — reducing compliance risks and operational delays.

Ready to Update Your Payroll Process?

Contact us today to learn how Pandahrms can help you stay compliant with the latest wage regulations while optimizing your HR operations.