How will the minimum wage increase impact employers with fewer than five workers?

Question

Accepted Answer

Minimum Wage Increase to RM1,700 Effective 2025, With Moratorium for Small Businesses

Employers with fewer than five workers will experience a delayed implementation of the increased minimum wage, with a six-month moratorium in place before the new policy takes effect. This adjustment is part of a broader plan to raise the national minimum wage from RM1,500 to RM1,700, scheduled to be implemented for most businesses at the beginning of next year. The revised minimum wage threshold for employees is set to commence on February 1, 2025.
Delayed Implementation for Micro-Businesses

For businesses that employ a workforce of fewer than five individuals, the new minimum wage policy will not commence immediately in 2025. Instead, these smaller employers have been granted a six-month moratorium, delaying the effective date of the RM1,700 minimum wage until August 1, 2025. This provides a grace period for the smallest businesses to adjust to the upcoming wage revision.
National Minimum Wage Adjustment

The government has announced a significant increase in the national minimum wage, raising it from the current RM1,500 to RM1,700. This change is slated to take effect for the majority of employers and businesses starting February 1, 2025. This represents one of the most substantial changes impacting local businesses outlined in the recent budget.
Broader Labour Policy Changes

Beyond the minimum wage adjustment, Budget 2025 includes other labour-related measures that may affect employers. These include the implementation of a levy mechanism in early 2025 aimed at reducing the reliance on foreign workers. Additionally, guidelines for starting salaries across all sectors are to be published, and incentives are being offered to employers who hire disabled individuals and former convicts.

Reading history

Hide →

This history is cleared when the page is closed.

How will the minimum wage increase impact employers with fewer than five workers?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends