RM1,700 Minimum Wage Now Mandatory for Small Businesses and Apprentices, Says HR Ministry

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The Ministry of Human Resources has announced that the amendments to the National Wages Consultative Council Act 2025 and the Minimum Wages Order 2024 have officially come into force starting today.

In a statement, the ministry said that under the new directive, employers who hire fewer than five workers and are not engaged in professions listed under the Malaysian Standard Classification of Occupations (MASCO) must pay a minimum monthly wage of RM1,700.

The ministry urged all employers to comply with the minimum wage laws enforced by the Labour Departments of Peninsular Malaysia, Sabah, and Sarawak. Failure to do so could result in fines of up to RM10,000 per affected employee upon conviction.

The ministry also stated that the minimum wage provision has now been expanded to include employees under apprenticeship contracts—part of the government’s ongoing efforts to enhance worker protection and welfare.

An apprenticeship contract, as defined by the ministry, is a formal agreement where the employer commits to providing systematic skills training to the employee over a period of six to 24 months, during which the apprentice remains employed.

The ministry commended employers who have already been paying minimum wages to their apprentices and reminded those who offer wages above the minimum standard that they are not allowed to reduce the existing wage level.

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