Four Million Workers to Benefit from RM2,000 Minimum Wage

PETALING JAYA: More than four million workers nationwide are set to benefit from an increase in the monthly minimum wage from RM1,700 to RM2,000, effective June 2027.

Human Resources Minister Datuk Seri R. Ramanan said micro, small and medium enterprises (MSMEs) with sales revenue below RM50 million would be exempted to allow them time to adjust their business models.

He said the government was also introducing a minimum starting salary of RM2,500 per month for semi-skilled positions and graduates to ensure wages better reflect workers’ qualifications and skills.

“The Ministry of Human Resources (KESUMA) will hold a press conference soon to provide further details on the implementation mechanism for the RM2,500 monthly minimum starting salary for semi-skilled positions and graduates,” he said in a statement yesterday.

Ramanan also welcomed the commitment by government-linked investment companies (GLICs) and government-linked companies (GLCs) to raise the living wage benchmark from RM3,100 to RM3,400 per month, benefiting 230,000 workers.

He therefore urged private-sector employers to offer more reasonable wages in line with employees’ productivity and contributions.

Regarding gig workers, Ramanan said a RM160 million co-funded package by the government and Grab, beginning in 2027, would help improve the net income and welfare of e-hailing and p-hailing workers.

“The package includes higher minimum earnings rates, assistance with vehicle maintenance and insurance costs, as well as contributions to the Social Security Organisation (SOCSO).

“The median net income of e-hailing drivers is expected to increase by up to RM227 per month, while p-hailing delivery riders could see an increase of up to RM100 per month,” he said.

Prime Minister Datuk Seri Anwar Ibrahim, during the tabling of Budget 2027 two days ago, announced several initiatives, including an increase in the minimum wage, improved welfare for gig workers and training opportunities aligned with industry needs.

Apart from these measures, Ramanan said the Gig Consultative Council was negotiating minimum earnings rates, income calculation formulas and minimum social protection standards for gig workers, which are expected to be finalised in early 2027.

He said earnings rates must take into account working hours and the actual costs of completing tasks to ensure gig workers receive fairer and more sustainable net incomes.

Ramanan said skills development would also receive significant attention through an RM8 billion allocation for Technical and Vocational Education and Training (TVET) across ministries.

He said the Human Resource Development Corporation (HRD Corp), with RM3 billion in levy funds, would support three million training opportunities.

“The Skills Development Fund Corporation (PTPK) will provide RM500 million to finance trainees at public and private skills training institutions registered with the corporation.

“KESUMA’s priority is to ensure that wage increases are supported by relevant skills and better social protection,” he said.

UTUSAN