Accra:More than four million workers will see an increase in their minimum wage from RM1,700 to RM2,000 per month starting in June 2027.
According to BERNAMA News Agency, the Human Resources Minister, Datuk Seri R. Ramanan, announced that micro, small, and medium enterprises (MSMEs) with annual sales below RM50 million will be exempted from this change initially, allowing them to adjust their business models accordingly.
Additionally, a minimum wage of RM2,500 per month will be introduced for semi-skilled jobs and new graduates. The Ministry of Human Resources (KESUMA) will provide further details on the implementation mechanism soon.
For gig workers, a RM160 million joint financing project between the government and Grab aims to enhance net earnings and welfare for e-hailing and p-hailing workers from 2027. Median net earnings for e-hailing drivers are projected to rise by up to RM227 per month, while p-hailing delivery riders’ earnings could increase by up to RM100 per month. The Gig Consultative Council is working on negotiating minimum income rates, an income formula, and minimum social protection standards for gig workers, with details expected by early 2027.
Prime Minister Datuk Seri Anwar Ibrahim outlined several initiatives when presenting Budget 2027, including the minimum wage increase, improved welfare for gig workers, and training opportunities aligned with industry needs.
In terms of skills development, RM8 billion has been allocated for Technical and Vocational Education and Training (TVET) across various ministries. HRD Corp, with RM3 billion in levy funds, will support three million training opportunities. The Skills Development Fund Corporation (PTPK) has allocated RM500 million for training trainees at registered public and private skills institutions, and more than RM40 million through HRD Corp has been earmarked to train 8,000 Malaysians in the elderly care sector.
Ramanan emphasized that KESUMA will ensure income improvements are supported by relevant skills and better social protection, aligning with industry needs and technological advancements.