When will the new minimum wage take effect for most companies?

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The New Minimum Monthly Wage of RM1,700 Will Be Mandatory by February 1, 2025

The new minimum monthly wage of RM1,700 in Malaysia is set to become mandatory for most companies by February 1, 2025. This adjustment represents an increase from the previous RM1,500 minimum wage that was established in May 2022. The implementation date for companies employing fewer than five individuals will be deferred by six months, taking effect on August 1, 2025.
Effective Date for Most Businesses

For the majority of employers across Malaysia, the revised minimum monthly wage of RM1,700 will come into force on February 1, 2025. This mandatory implementation signifies a nationwide standard for compensation.
Delayed Implementation for Small Businesses

Companies that operate with a workforce of fewer than five employees will experience a staggered rollout of the new minimum wage. Their obligation to adhere to the RM1,700 threshold will commence on August 1, 2025, providing a six-month extension compared to larger enterprises.
Background of Minimum Wage Orders

The introduction of a mandated minimum wage in Malaysia is not a new policy. The Minimum Wage Order was first issued in 2013, following the enactment of the National Wages Consultative Council Act 2011. This legislation established the National Wages Consultative Council (NWCC) to advise the federal government on minimum wage matters, and since 2020, both East and West Malaysia have implemented a uniform minimum wage.

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When will the new minimum wage take effect for most companies?

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