Malaysia: Minimum Salary Changes and Exemptions

Key Points  

• Malaysia increased the country’s minimum monthly wage requirements and introduced temporary exemptions for employers under certain conditions  

Overview  

The government of Malaysia increased the country’s minimum wage to RM 1,500 on 1 January 2023. According to the government announcement, employers in all sectors regardless of region, who employ five or more employees must adhere to the country’s minimum wage requirements.  

The exemption will not apply to employers who carry out professional activities that are classified under the Malaysia Standard Classification of Occupations.   

The government also stated that employers with less than five employees will be exempt from minimum wage requirements. This exemption will remain in place until 1 July 2023.    

What are the Changes?  

Malaysia's government introduced new monthly salary requirements on 1 January 2023. According to the government announcement, this decision was made to reduce the economic burdens faced by small businesses in Malaysia.  

Looking Ahead    

Continue to check the government of Malaysia’s website and Envoy’s website for the latest updates and information.