Minimum wage in Malaysia 2026: RM1,700 a month

Who the RM1,700 floor covers

The order covers every employee in Peninsular Malaysia, Sabah and Sarawak except domestic servants, as defined in the Employment Act 1955 and the Sabah and Sarawak labor ordinances. There has been one national rate, with no regional split, since 2022.

• Firms with five or more employees and any employer in a MASCO-classified professional activity, whatever its size, have paid RM1,700 since February 1, 2025.
• Firms with fewer than five employees could pay RM1,500 from February 1 to July 31, 2025, and have owed RM1,700 since August 1, 2025.
• Piece-rate, tonnage, task, trip and commission workers must still receive at least RM1,700 a month.

Other minimum wage rates in Malaysia

Malaysia minimum wage history

Daily and hourly rates in the order

The order itself converts the monthly rate for staff paid by the day or hour. Daily rates depend on the working week: RM65.38 for six days, RM78.46 for five and RM98.08 for four. The hourly rate is RM8.72, which is 1,700 x 12 / 52 / 45, using the 45-hour week in section 60A of the Employment Act. Over a year the monthly minimum comes to 12 x 1,700 = RM20,400 (about $4,998).

The RM2,000 announcement: what is and is not settled

On October 16, 2026 the national news agency BERNAMA reported the Prime Minister setting the next minimum at RM2,000 a month in 2027, citing June 2027, with micro, small and medium enterprises with sales below RM50 million exempted from the new rate. That would be a 17.65% rise. A Minimum Wages Order 2027 has been referred to, but we have not seen its text or start date.

Until the order is gazetted, RM1,700 is the legal floor. If you are budgeting a 2027 hire, model both figures, and check whether your employer, or your EOR's local entity, falls inside the exemption, which is defined by the employer's sales, not yours. The law requires the rate to be reviewed at least every two years.

EPF, SOCSO and EIS on a minimum-wage salary

For a Malaysian employee under 60 earning RM5,000 or less, the employer pays EPF at 13%. SOCSO (1.75%) and EIS (0.2%) apply on wages up to RM6,000; those two percentages come from a secondary source (Deloitte), while the EPF rate and SOCSO ceiling are from KWSP and PERKESO. On RM1,700:

• EPF: 13% x 1,700 = RM221.00
• SOCSO: 1.75% x 1,700 = RM29.75
• EIS: 0.2% x 1,700 = RM3.40
• Total: RM254.15 a month, 14.95% of pay (about $62)

EPF totals are rounded up to the next ringgit. Employers with 10 or more staff may also owe the 1% HRD Corp levy (RM17 at this wage); we did not verify that rate. For non-Malaysian workers, EPF has been 2% from the employer and 2% from the employee since October 2025 wages. The employer cost index compares these rates with other countries.

Hiring a minimum-wage employee in Malaysia from abroad

An employer of record registers with EPF, SOCSO and EIS and runs monthly payroll. Published EOR list prices run from $99 (Native Teams, whose help center says EUR 99) to $699 (Oyster) per employee per month (checked October 16 and 18, 2026); Remote lists from $599. That is more than the RM1,700 salary itself (about $417), so an EOR fits roles paid well above the minimum.

The Malaysia EOR guide covers notice and termination benefits. Compare providers in our EOR rankings and EOR fees side by side. For typical pay, see average salary in Malaysia; for neighbors, the Singapore and Indonesia minimum wage pages.