Malaysia minimum wage rises to RM2,000 from June 2027

10 October 2026 · Effective 1 June 2027

Prime Minister Anwar Ibrahim announced in Budget 2027 that the national minimum wage will rise from RM1,700 to RM2,000 per month, effective June 2027. MSMEs with annual revenue below RM50 million are exempted from the new rate, giving smaller businesses additional time to adjust. Over 4 million workers are expected to benefit. Employers above the revenue threshold must update payroll to reflect the new floor rate by June 2027. The Malaysian Employers Federation welcomed the announcement and noted the MSME exemption provides breathing room for smaller firms.

What this means for you

All employers at or above the RM50m annual revenue threshold must update minimum wage settings in StaffE under Settings > Payroll before June 2027. MSMEs below RM50m revenue should confirm their exemption status and monitor any gazette details for compliance.

Read the official source →

Summarised from public announcements and reviewed before publishing. Always confirm with the official KWSP, PERKESO, LHDN or JTK notice before changing payroll.

StaffE keeps EPF, SOCSO, EIS and PCB rates current for you and flags changes like this inside payroll. staffe.io →

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