ALL six of Malaysia’s government-linked investment companies (GLICs) have now adopted a living wage policy, ensuring every permanent Malaysian employee under their purview earns a monthly income above the basic threshold required for a decent standard of living.
In a joint statement today, Khazanah Nasional Bhd, Permodalan Nasional Bhd (PNB), the Employees Provident Fund (EPF), Kumpulan Wang Persaraan (Diperbadankan) (KWAP), Lembaga Tabung Angkatan Tentera (LTAT), and Lembaga Tabung Haji (TH) confirmed they have aligned with the new benchmark wage of RM3,100 per month.
This wage level surpasses the national minimum wage of RM1,700 per month introduced in Budget 2025 and enforced since 1 February 2025.
Finance Minister II, Datuk Seri Amir Hamzah Azizan, hailed the implementation as a pivotal moment in national labour reform, describing it as an important move to “raise the floor” in support of inclusive and equitable economic growth.
“The living wage implementation forms part of the GEAR-uP initiative led by the Ministry of Finance that seeks synergised efforts across GLICs to catalyse growth in key economic sectors in Malaysia, with the dual objectives of ‘raising the ceiling’ and ‘raising the floor’,” he said.
The RM3,100 benchmark was derived from the Belanjawanku 2024/2025 Expenditure Guide, which estimates the minimum monthly outlay necessary for an individual to maintain a decent quality of life in urban Malaysia. The guide was developed collaboratively by the EPF and Universiti Malaya’s Social Wellbeing Research Centre.
GLICs clarified that the living wage commitment is not limited to base salary alone, but also includes a broader compensation package that enhances the overall well-being of employees.
This includes access to healthcare, structured retirement savings, and other financial security measures.
“The living wage approach empowers employers to offer total compensation that goes beyond base salary,” the statement added.
The policy forms a central component of the GEAR-uP initiative, a government strategy aimed at unlocking Malaysia’s economic potential while ensuring prosperity is shared more fairly across the population. - May 1, 2025
