What is the minimum wage in Malaysia in 2026?
RM1,700 a month, or RM8.72 an hour. It has applied to employers with 5 or more staff since 1 February 2025, and to employers with fewer than 5 staff since 1 August 2025. Budget 2027 announced a rise to RM2,000 from June 2027.
The rates today
RM1,700 a month. For daily pay it is RM65.38 for a 6 day week, RM78.46 for a 5 day week and RM98.08 for a 4 day week. The hourly rate is RM8.72. It applies across Peninsular Malaysia, Sabah, Sarawak and Labuan.
What changes in 2027
In Budget 2027 the government announced RM2,000 a month from June 2027. Which employers it covers and the exact start date come in the Minimum Wages Order, so check the Ministry of Human Resources before you change your pay.
What counts towards the minimum
Basic wage is what is compared with the minimum. Overtime, most allowances and bonuses do not count towards it. EPF, SOCSO and EIS are still deducted from the wage as usual.
How Lucco Boss helps
Lucco Boss payroll works out EPF, SOCSO, EIS and PCB on each salary and gives payslips on staff phones, free for up to 5 staff. When the minimum changes, update each basic salary once and every payslip after that follows.
Updated · Lucco Technology