Malaysia plans to amend wage law to set a RM2,500 starting salary floor for graduates

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Graduate wage law amendments

Highlights

The Malaysian government plans to amend wage legislation to mandate a RM2,500 starting salary floor for graduates, with completion targeted before June 2027.
Basic wage guidelines by occupation, qualifications and skills will be published and implemented alongside the new national minimum wage rate in June 2027.
Kesuma is developing an e-wages module as a mechanism to monitor wage payments for all workers, including non-citizens, to improve compliance with minimum wage levels.

This article was translated from the original. Read the original version by our correspondent here.

Legislative amendments and implementation timeline

As reported by The Edge Malaysia, Human Resources Minister Datuk Seri R Ramanan said current legislation does not allow minimum wages to be set based on educational qualifications, and the ministry is therefore aiming to complete the necessary legislative amendments before June 2027. He said the legal framework must first be established to make the requirement mandatory.

During this period, the ministry, also known as Kesuma, is preparing basic wage guidelines based on occupation, qualifications and skills. The guidelines are targeted for publication and implementation alongside the new national minimum wage rate in June 2027.

Ramanan said the guidelines will use the Malaysia Standard Classification of Occupations, Masco, as a central reference for employers and employees on starting basic wages. According to him, the ministry's focus is not merely on setting wage figures, but on developing a clearer wage structure based on occupation, qualifications and skills.

Impact on wage monitoring and the labour market

Kesuma is also developing a wage-payment monitoring mechanism through an e-wages module, which is proposed to be extended to all workers, including non-citizens. The mechanism is intended to support enforcement by monitoring whether wages are paid through the prescribed methods, within the required period and in accordance with employment contracts.

The system will cover agreed payments such as basic wages, allowances, incentives and bonuses. The measure is expected to help reduce issues involving unpaid or late-paid wages, underpayments and breaches of minimum wage requirements, while providing employers with more structured guidance when setting starting salary offers.

In our earlier coverage of quality investment criteria, we stressed that investment value should be assessed through the quality of jobs created—including fair pay, safe workplaces and flexible work arrangements, particularly to support women's participation. We also highlighted how greater gender equality and support such as childcare can help more women remain in the workforce and strengthen the country's economic capacity.

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