Minimum wage will be raised to RM2,000 per month from RM1,700, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced during the tabling of Budget 2027 today, marking another significant adjustment to the country’s statutory wage floor.
The RM300 increase represents a 17.6% rise from the existing minimum wage and forms part of the government’s broader effort to lift workers’ incomes amid higher living costs and concerns that wage growth has not kept pace with productivity and economic expansion.
The current RM1,700 minimum wage was introduced from Feb 1, 2025 and became fully applicable from Aug 1, 2025 after a transitional period for smaller employers.
