Minimum wage 2026

The minimum wage is RM1,700 a month or RM8.72 an hour, for every employer since 1 August 2025. On RM1,700 a single Malaysian under 60 takes home RM1,489.10 after EPF, SOCSO and EIS, with no PCB. Budget 2027 proposes RM2,000 from June 2027.

Rates checked

The rates

The Minimum Wages Order 2024 sets the minimum at RM1,700 a month, for every employer since 1 August 2025. Paid by the hour or the day, it’s:

Minimum wage, 2026
A monthRM1,700.00
An hourRM8.72
A day, six-day weekRM65.38
A day, five-day weekRM78.46
A day, four-day weekRM98.08

It’s the basic wage, before anything comes off. Domestic servants aren’t covered. Overtime is on top of the minimum, never part of it: the overtime calculator works out the Employment Act’s rates.

What’s left of RM1,700

RM1,700 a month, single Malaysian under 60, 2026
SalaryRM1,700.00
EPF (11%)−RM187.00
SOCSO, of which RM12.35 is LINDUNG 24 Jam−RM20.60
EIS−RM3.30
PCBRM0.00
Take-home payRM1,489.10

There’s no PCB. After EPF relief and the RM9,000 personal relief, chargeable income for the year is RM9,156, and the tax on it, RM41.56, is less than the RM400 rebate. Opting out of LINDUNG 24 Jam would add RM12.35 a month. Your employer pays RM253.15 on top. The RM1,700 salary page has the working for each line.

Budget 2027: RM2,000 proposed

Budget 2027 proposes raising the minimum wage to RM2,000 a month from June 2027, with MSMEs whose annual sales are under RM50 million exempt. On RM2,000 you’d take home RM1,751.70, still with no PCB: RM262.60 more than on RM1,700 today. It also proposes RM2,500 a month for semi-skilled occupations and graduates, with no start date yet. The Budget 2027 guide has the rest.

If you’re paid less

Check your basic pay, not your take-home pay: the minimum is the wage before EPF, SOCSO and EIS. If your basic pay is under it, raise it with your employer first. In Peninsular Malaysia and Labuan the Labour Department (JTKSM) deals with complaints about wages.

See it on your own pay: the salary calculator shows each deduction with its working.

Questions

Is the minimum wage before or after EPF?

Before. RM1,700 is the wage your employer pays; your EPF, SOCSO and EIS come off it, so take-home pay is less: RM1,489.10 for a single Malaysian under 60.

What’s the minimum if I’m paid by the hour or the day?

RM8.72 an hour. By the day it depends on the days you work a week: RM65.38 for six, RM78.46 for five and RM98.08 for four.

Does it cover foreign workers?

Yes. The Order leaves out only domestic servants, so foreign workers are owed the same minimum as Malaysians.

Sources

  1. Attorney General’s Chambers (Federal Gazette): Minimum Wages Order 2024, P.U.(A) 376/2024: RM1,700 a month, RM8.72 an hour, and the daily rates (checked 28 October 2026)
  2. Ministry of Finance Malaysia: Budget 2027 speech, 9 October 2026 (checked 28 October 2026)
  3. Ministry of Finance Malaysia: Budget 2027 tax measures (appendices on individual tax rates and reliefs, and employers’ salary deductions) (checked 28 October 2026)
  4. KWSP (EPF): Third Schedule, EPF Act 1991: contribution rates from 1 October 2025 (checked 26 October 2026)
  5. PERKESO (SOCSO): Employees’ Social Security Act 1969 (Act 4): new contribution rate including SKBBK (checked 26 October 2026)
  6. PERKESO (SOCSO): Rate of contribution, Employment Insurance System (Act 800) (checked 26 October 2026)
  7. LHDN (Inland Revenue Board of Malaysia): Specification for Monthly Tax Deduction (MTD) Calculations Using Computerised Calculation for 2026 (checked 28 October 2026)

Spotted a figure that doesn’t match your payslip or a source? Tell us; corrections are logged on the sources page.

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