RM2,000 minimum wage set for June 2027; smaller firms exempt
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The government has announced a RM2,000 monthly minimum wage from June 2027, but the Budget 2027 measure is not a pay rise taking effect this month.
The Finance Minister set out the increase from RM1,700 when presenting the budget on October 9. Micro, small and medium enterprises with annual sales below RM50 million are to be exempted to give them time to adjust their business models. The announcement did not specify an end date for that exemption.
For Kuching employees and employers, the date and the business category both matter. The announced RM300 increase is not a promise that every worker will move to RM2,000 immediately, or that every employer falls under the new rate. Implementation rules will need to spell out the coverage and obligations.
A separate income-framework reform would introduce a RM2,500 minimum starting wage for semi-skilled positions and graduates. The budget speech did not attach the June commencement date to that separate measure. Jobseekers should therefore keep the two figures distinct: one is the announced general minimum-wage rate, while the other concerns the proposed starting-pay framework for specified workers.
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