KESUMA: RM1,700 Minimum Wage Takes Full Effect From Aug 1

The RM1,700 monthly minimum wage will come into full force nationwide from Aug 1, following the end of the six-month deferment period, the Ministry of Human Resources (KESUMA) said.

In a statement, the ministry said the 2024 Minimum Wage Order will apply to all employers regardless of company size, including those previously granted deferment until July 31.

The order covers non-citizen workers and contract apprentices, but excludes domestic workers.

KESUMA reminded employers to review their wage structures to ensure no employee receives a basic salary below the stipulated minimum and to adjust operations through productivity improvements and skills training.

Failure to comply is an offence under the National Wages Consultative Council Act 2011, carrying a fine of up to RM10,000 for each affected employee, with an additional RM1,000 daily penalty after conviction.

Repeat offences may result in fines of up to RM20,000 or imprisonment of up to five years.

The ministry also encouraged employers to adopt the Progressive Wage Policy (PWP), which links wage increases to productivity, skills and performance, while offering targeted government cash incentives to support talent retention and long-term competitiveness.

Complaints can be lodged with the Department of Labour nationwide or via KESUMA’s official website.

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