The government is reviewing the current RM1,700 minimum wage, with the final decision on whether to maintain or increase the rate to be determined by the National Wages Consultative Council.
Human Resources Minister R Ramanan said the review would take into account several key economic indicators, including the poverty line and median wage, to assess workers’ basic needs while considering employers’ ability to meet higher wage costs.
He said other factors, such as inflation, labour productivity and the unemployment rate, would also be considered in the review, Utusan Malaysia reported.
Ramanan said the ministry had yet to conduct a dedicated study on the concept of a living wage, although Bank Negara Malaysia introduced the idea in 2018 and estimated that a single person living in Kuala Lumpur would require about RM2,700 under a living wage benchmark at the time.
“The Department of Statistics Malaysia’s basic expenditure of decent living provides a more detailed measure based on location, demographics and actual household spending patterns,” he was quoted as saying.
He added that the 13th Malaysia Plan had also outlined labour market reforms aimed at accelerating wage adjustments, including reviews of the minimum wage that take living wage considerations into account.
The review comes as the RM1,700 minimum wage has been in effect since August 2025, covering workers across Malaysia except domestic workers and apprentices.
Any adjustment to the current rate would ultimately depend on the council’s assessment of economic conditions, workers’ needs and the ability of businesses to absorb additional labour costs.
