RM1,700 Minimum Wage: Does It Cover You, and What to Watch in Budget 2027 (9 October)

As of 30 September 2026. We will update this page after 9 October. The minimum wage is the most talked-about issue for workers this month. Some people say RM2,000, the trade union body says RM3,100, and nothing has been decided. This post is not a news round-up (see our September news post for that). It answers two practical questions: does the current RM1,700 minimum wage cover you, and what should you watch for on Budget day?

The current rule: RM1,700 a month

The minimum wage is RM1,700 a month for private-sector employees. The Ministry of Finance's Pre-Budget Statement 2027 confirms this figure. It came into force in two steps, according to The Star (22 Jul 2025):

• 1 February 2025: employers with five or more employees, and employers in professional activities.
• 1 August 2025: all employers, regardless of size.

The ministry said that from 1 August 2025 "all employers without exception" must comply.

The Parliament of Malaysia, where Budget 2027 will be tabled. Photo: Thealien77, CC BY-SA 4.0, via Wikimedia Commons

Does it cover you?

Foreign workers. Yes, in the private sector. The National Wages Consultative Council said the policy must not discriminate on nationality, and that the exceptions are domestic workers and contract apprentices (The Star, 19 Oct 2024).

Sabah and Sarawak workers. The same report says the Labour Department enforces the rule across Peninsular Malaysia, Sabah and Sarawak. If you are a private-sector employee, you are covered.

Small employers. Since 1 August 2025 the size of the employer no longer matters.

If you agreed to a lower wage. It does not count. The report says employers must pay the minimum wage even if the worker agrees to a lower basic wage.

Not covered: domestic workers, and contract apprentices. If you are unsure which category you fall into, ask the Labour Department (JTK).

How to check your payslip

1. Ask for a payslip every month. If your employer does not give one, take a photo of the amount you receive and of your bank record.
2. Find the line called basic wage (gaji pokok). The Star reports that employers must review salary structures so that no basic salary is below RM1,700.
3. Compare the basic wage line with RM1,700 for a full month of work. We are not giving you a rule on which allowances count. If your payslip is confusing, ask your employer to explain each line and keep the answer in writing.
4. Keep every payslip and bank record. Photos on your phone are fine.
5. If the amount is below the minimum, talk to your employer first, then see our guide on complaining to JTK Johor Bahru.

The penalties for employers who break the rule are set out in the National Wages Consultative Council Act 2011, and the two Star reports quote different figures, so we are not repeating a number here. Check with JTK.

The Ministry of Finance in Putrajaya. Photo: Philip Nalangan, CC BY 4.0, via Wikimedia Commons

Proposals versus decisions

None of the following has been decided as of 30 September 2026.

| Who | What they said | Status | |---|---|---| | Economy Minister Akmal Nasrullah | A RM2,000 minimum wage: the decision rests with the Prime Minister's announcement in Budget 2027, and the effect on micro, small and medium businesses must be considered | Malay Mail, 28 Sep 2026 | | MTUC (trade union body) | Wants RM3,100 in Budget 2027 | FMT, 27 Sep 2026 | | Prime Minister Anwar | "If productivity is soaring and companies are making billions in profits, but workers are still earning RM1,700, then we have not raised the floor." He said he would announce more wage-related initiatives in the Budget. | The Star, 27 Sep 2026 |

Two more numbers appear in the Pre-Budget Statement: a living wage of RM3,100 adopted by government-linked investment companies and government-linked companies, and unemployment of 2.9% in the first quarter of 2026. The statement also says the government wants to reduce "excessive reliance on low-skilled foreign labour" through automation and better workforce planning. That is a policy direction, not a rule that changes your rights today.

What to watch on 9 October

Budget 2027 is scheduled to be tabled in Parliament on 9 October 2026 (MOF; The Star). When the announcement comes, write down:

1. The new rate. Is it monthly? Is the figure the same for everyone?
2. The start date. The last increase was phased: 1 February 2025 for larger employers and 1 August 2025 for everyone. A new rate may or may not be phased again, so check the date.
3. Who is covered. Look for whether foreign workers and small employers are included, as they were last time.
4. Your employer's plan. Ask when your payslip will change.
5. Other items in the Budget that affect your costs, such as cash aid or electricity. See our post on the TNB 800 kWh protection.

Work shirts drying outside a worker house. Photo: Bilik Sewa Senai

Common mistakes

• Treating a proposal (RM2,000 or RM3,100) as if it were already law. Nothing changes until it is announced and given a start date.
• Not keeping payslips or bank records, which makes any later complaint much harder.
• Comparing the total you take home with RM1,700 without checking what the basic wage line says.
• Waiting until after a Budget announcement to ask the employer, instead of asking about the plan for the payslip early.
• Assuming your status is the same as a colleague's. Domestic workers and contract apprentices are treated differently.

FAQ

Does the RM1,700 minimum wage apply to foreign workers? Yes for private-sector workers. The exceptions are domestic workers and contract apprentices, according to the National Wages Consultative Council as reported by The Star.

My employer says I agreed to a lower wage. Is that allowed? The Star reports employers must pay the minimum wage even if the worker agrees to a lower basic wage.

Will the minimum wage go up to RM2,000 or RM3,100? Nobody knows yet. RM2,000 is under discussion, MTUC wants RM3,100, and the decision rests with the Prime Minister in Budget 2027 on 9 October.

Where do I complain if I am paid less? Talk to your employer first, keep your payslips, and contact the Labour Department (JTK). See our JTK guide.

Will this post be updated? Yes. We plan to update it after Budget 2027.

Sumber / Sources

• Ministry of Finance, Pre-Budget Statement 2027 (18 Aug 2026)
• The Star, Low wages to be tackled (27 Sep 2026)
• The Star, Minimum wage of RM1,700 also applies to foreign workers (19 Oct 2024)
• The Star, RM1,700 minimum wage to come into force from Aug 1 (22 Jul 2025)
• Malay Mail, Economy Minister Akmal says RM2,000 minimum wage decision rests with PM (28 Sep 2026)
• Free Malaysia Today, MTUC wants RM3,100 minimum wage in 2027 Budget (27 Sep 2026)
• Photos: Thealien77, CC BY-SA 4.0, Wikimedia Commons; Philip Nalangan, CC BY 4.0, Wikimedia Commons

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