The government will amend the National Wages Consultative Council Act 2011 so that minimum wages can be set according to education level, Human Resources Minister Datuk Seri R. Ramanan said.
The change is needed to make compulsory the RM2,500 monthly starting salary for graduates and semi-skilled workers announced under Budget 2027. The current law does not allow minimum wages to be fixed by level of education.
Speaking at a press conference in Putrajaya, Ramanan said the ministry aims to complete the legal changes before June 2027 and will move as quickly as possible.
The ministry is also preparing starting basic salary guidelines based on occupation, qualifications and skills, using the Malaysia Standard Classification of Occupations (Masco) as the main reference. The aim is a clearer wage structure rather than a single salary figure.
The guidelines are to be published and put in place together with the new national minimum wage of RM2,000 in June 2027. Micro, small and medium enterprises with annual sales below RM50 million are exempted from the minimum wage increase.
Separately, the ministry is developing an e-wages module to monitor wage payments, which it proposes to extend to all employees, including non-citizens. It would track whether basic pay, allowances, incentives and bonuses are paid on time, by the prescribed method and in line with employment contracts, with the aim of reducing unpaid and late wages, underpayment and minimum wage breaches.
This article is general information, not legal advice. For advice on your own situation, speak to a lawyer.