MALAYSIA’S lowest-paid workers could see their monthly earnings rise substantially if the government adopts the Malaysian Trades Union Congress’ (MTUC) proposed RM3,100 minimum wage, as the country reassesses whether the current RM1,700 floor remains adequate amid rising living costs.
The proposed rate would represent an increase of RM1,400, or about 82%, giving workers currently earning the statutory minimum potentially greater room to meet the cost of food, housing, transport and other essential expenses.
MTUC secretary-general Kamarul Baharin Mansor said RM3,100 should be used as the benchmark for determining the next minimum wage, arguing that the current rate no longer adequately reflects the financial pressures faced by workers.
The debate is particularly significant for employees who have remained on the minimum wage despite accumulating years of experience.
Kamarul said some workers were still earning RM1,700 a month even after a decade of service, pointing to the absence of a proper wage structure that rewards experience, skills and education.
He said the country needed to move beyond a single minimum wage threshold and establish a broader wage structure that also benefited middle-income workers, allowing pay to progress according to skills, qualifications and years of experience.
Such a system, he said, could help workers secure better incomes while enabling employers to attract skilled talent, address labour-market mismatches and raise productivity.
Kamarul welcomed Human Resources Minister Datuk R. Ramanan’s confirmation that the government was reviewing the minimum wage, describing the move as a positive signal for workers.
Under the National Wages Consultative Act, the minimum wage must be reviewed every two years. Kamarul said the government had about five months remaining before the next deadline and should determine the new rate promptly.
“Following the increase implemented in February 2025, the new rate should come into effect in February 2027. Any delay could place greater pressure on workers amid rising costs of goods,” he said.
For workers at the bottom of the wage scale, the outcome of the review could have a direct impact on household finances, particularly as higher wages could provide greater capacity to absorb increases in everyday expenses.
But any major increase would also have implications beyond workers’ pay packets, potentially affecting salary structures across industries and increasing employers’ labour costs.
The Malaysian Employers Federation has cautioned against an abrupt, blanket increase, warning that businesses could face severe financial pressure and that higher costs could contribute to inflation.
The Small and Medium Enterprises Association of Malaysia has similarly called for a more flexible approach, suggesting that future wage adjustments take into account differences in company size and geographical location rather than imposing a uniform rate nationwide.
For MTUC, however, the review presents an opportunity to tackle a wider problem in Malaysia’s labour market — ensuring workers do not remain stuck at the statutory wage floor despite acquiring additional skills and years of experience.
Kamarul said MTUC was ready to work with the government through the National Wages Consultative Council and provide its views on the new rate.
Ramanan said last Tuesday that the minimum wage was under review, setting the stage for a closely watched debate over how much Malaysian workers should earn while balancing household needs with the financial realities facing employers. - August 24, 2026
