Minimum wage
in Malaysia.

SALARY PAYMENT IN Malaysian Ringgit (MYR, RM)

CONTRACT LANGUAGES Malay / English

PAYROLL TAX 13.22%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours
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Malaysia

What is the minimum wage in Malaysia per hour?

The Malaysian government reviews the minimum wage every 2 years. The Minimum Wages Order 2022 introduced amendments that increased Malaysia’s national minimum wage, for those employed in the private sector, to RM1,500 per month. This came into effect on the 1 January 2023. The Minimum Wages Order 2022 also set out the minimum wage rates for employees paid on daily or hourly basis, with the hourly minimum wage being set at RM7.21 per hour.

Are there regional variations in Malaysia minimum wage?

Malaysia has a national minimum wage meaning the minimum wage rates are the same across the country’s regions, states and cities.

How has minimum wage in Malaysia changed in the last 5 years and beyond?

The Malaysian government reviews the national minimum wage every 2 years. In February of 2020, Malaysia’s national minimum wage was set at RM1,200 per month for urban districts and RM1,100 for rural districts. In May of 2022, the national minimum wage was increased by 25 percent to RM1,500 for businesses operating in the private sector with five employees or more.

Malaysia – Minimum Wage Over the Years

Date	Min. wage, hourly rate (KRW)
2023	1,500 (Entire Country)
2022	1,500 (Entire Country)
2021	1,200 (Major towns);1,100 (elsewhere)
2020	1,200 (Major towns);1,100 (elsewhere)
2019	1,050 (Entire Country)
2018	1,050 (Entire Country)
2017	1,000 (Peninsular Malaysia); 920 (Elsewhere)
2016	1,000 (Peninsular Malaysia); 920 (Elsewhere)

How does the minimum wage in Malaysia compare to surrounding countries?

Malaysia’s minimum wage of RM1,500 (≈$347 per month) is slightly higher than many of the countries that surround it.

Vietnam: VND4,680,000 per month (≈$200 per month)
Thailand: THB354 per day (≈$225 per month)
Indonesia: IDR4,900,000 per month (≈$323 per month)
Cambodia: KHR823,111 per month (≈$200 per month)

Malaysia’s closest neighbor, Singapore does not have a national minimum wage. However, with the higher cost of living wages in Singapore are, on average, much higher than those in surrounding countries.

Is there a different minimum wage for expats in Malaysia?

No. Malaysia’s national minimum wage applies to all workers, including foreigners working in Malaysia.

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Your business can easily hire employees in Malaysia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

What is the difference between the average salary and the minimum wage in Malaysia?

Median salaries vary across industry sectors and job roles. In Q4 of 2022, median income from wages and salaries was RM3,149 per month. Compare this to the minimum wage of RM1,500 per month.

Is it possible to hire skilled employees close to the minimum wage in Malaysia?

It is highly unlikely that skilled employees will accept a salary that is close to Malaysia’s minimum wage. Successive Malaysian governments have focused on policies designed to upskill the Malaysian workforce and move the economy towards becoming a high-income country.

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