We set down updates on recent changes to Employment Law in
Malaysia.
Minimum Wage
Effective 1 February 2025, the minimum wage for all employment
sectors in Malaysia was increased from RM1,500 to RM1,700.
Employers with less than 5 workers are granted a deferment to 1
August 2025 to comply.
The new minimum wage rate is as follows:
Employees' Provident Fund Contributions for Foreign
Workers
An amendment bill was passed by the Malaysian Parliament in
March 2025, whereby contributions by both employers and employees,
will become mandatory in respect of all foreign workers, at the
rate of 2% of the amount of wages.
The above change will reportedly come into force in the fourth
quarter of 2025.
