Employers advised against passing wage increase costs to consumers
05 Feb 2025
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Malaysia has hiked employees' minimum wage to RM1,700, as businesses are urged to avoid passing the wage hike costs to consumers.
A total of 4.37 million workers will see their wages increase due to the hike on minimum wage, which was previously at RM1,500, Bernama reported.
According to the report, the pay increase impacts employers with five or more employees, as well as organisations running professional activities, regardless of their employee numbers.
Organisations with fewer than five employees have been given a six-month deferment until 1 August to help them make necessary adjustments for the wage hike.
Malaysia's Ministry of Human Resources said the adjustment is part of the government's efforts to enhance worker earnings, as well as complement its initiatives to boost productivity and income levels.
Employers who do not comply with the wage hike may receive penalties under the National Wages Consultative Council Act 2011, according to Bernama.
Meanwhile, the Malaysian Employers Federation (MEF) warned organisations against passing the minimum wage hike costs to consumers.
MOM warned that price increases in products and services will only lead to higher inflation and reduce competitiveness.
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