Minimum wage rises to RM2,000 from June 2027

The government says more than 4 million workers are covered by the new rate.

The exemption is meant to give smaller businesses time to adjust. No end date for it has been given. If you work for a small company, ask your employer whether the new rate applies to you.

There is a second rule for bigger employers. Companies that are not small or medium businesses can only claim tax deductions on wages paid through a bank account. This is aimed at employers who hire undocumented foreign workers.

Not announced yet: how the RM50 million revenue is measured, and the hourly and daily rates.