Malaysia Minimum Wage Review: MTUC Proposes RM3,100; Business Groups Warn of Cost Pressures
8 October 2026
Active debate is underway over Malaysia's next minimum wage revision. MTUC has formally proposed RM3,100 as the new minimum wage. Business groups (SME Malaysia, MRCA) are seeking a deferment, warning that a hike to RM2,000 would pressure 92.8% of businesses and trigger cascading cost increases including higher operating costs and property prices. No new rate has been gazetted yet — this remains a proposal/consultation phase.
What this means for you
All employers paying minimum wage are potentially affected. No action required yet, but SME owners should monitor announcements closely. When a new rate is gazetted, update the minimum wage floor in StaffE under Settings > Payroll Rates to ensure compliance before the effective date.
Summarised from public announcements and reviewed before publishing. Always confirm with the official KWSP, PERKESO, LHDN or JTK notice before changing payroll.