Malaysia minimum wage rises to RM2,000 from June 2027
11 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, effective June 2027. Businesses classified as MSMEs with annual revenue below RM50 million are exempted from the new rate, giving smaller firms additional time or relief. The increase is expected to benefit over 4 million workers nationwide. Employers above the MSME revenue threshold must budget for the higher floor wage before June 2027. The Malaysian Employers Federation has welcomed the move and noted the MSME exemption provides breathing room for smaller operations.
What this means for you
All employers above the RM50m MSME revenue threshold must update minimum pay floors before June 2027. Check Settings > Payroll in StaffE to update salary bands and statutory contribution bases for affected employees.
Summarised from public announcements and reviewed before publishing. Always confirm with the official KWSP, PERKESO, LHDN or JTK notice before changing payroll.