As of 1 August 2025, the RM1,700 national minimum wage applies nationwide (end of deferments). Domestic workers remain exempt. For HR leaders and business owners, this is not just an HR update and it has a direct impact on hiring budgets, vendor contracts, and recruitment strategy. Here’s what to fix this week to stay compliant and avoid disputes.
Immediate HR Checklist
✅ Update payroll baselines
All covered employees must now be paid at least RM1,700 basic.
✅ Reissue offers/letters where basic < RM1,700
Clarify employment terms to avoid disputes.
✅ Recalculate SOCSO/EIS correctly
SOCSO and EIS contributions must align with the updated wage, capped at RM6,000. Miscalculations expose employers to penalties and audit risks.
✅ Recheck overtime (OT) policies
Under the amended Employment Act 1955, the weekly work cap is 45 hours. Any additional hours must be compensated properly.
✅ Update job ads and budget templates
Don’t advertise below RM1,700. We recommend recalibrating your cost-per-hire and job budget planning.
✅ Review contractors/vendors for compliance
If you rely on third-party vendors or a manpower supply company, confirm their payroll meets the new standard. Non-compliance from vendors can still expose your brand to reputational risks.
Why This Matters for Employers
- Financial Planning: Staffing costs will rise across all sectors—from manufacturing and logistics to retail and F&B.
- Talent Competition: Higher baseline pay levels the playing field—companies must sharpen their employer value proposition (EVP) to attract and retain workers.
- Compliance Confidence: Partnering with a licensed recruitment firm in Malaysia helps you stay audit-ready and avoid penalties.
Sources (Official & Reliable)
- Malay Mail – Minimum wage nationwide RM1,700 from Aug 1, 2025
- HR Online – Domestic workers exempt from RM1,700 wage
- Lexology – Minimum Wages Order 2024 enforcement
- PERKESO – SOCSO contribution rates
- JTKSM – Employment Act 1955
Looking to Work with a Reliable Recruitment Firm in Malaysia?
At Kanry, we understand that updates like the RM1,700 minimum wage directly impact your workforce planning, compliance obligations, and recruitment costs.
Why Kanry?
- Licensed & compliant: Approved by JTKSM as a recruitment firm.
- Certified standards: ISO 9001 (Quality Management) and ISO 14001 (Environmental Management).
- Audit integrity: Successfully passed RBA (Responsible Business Alliance) audits.
- Proven expertise: Supporting Malaysian employers in manufacturing, logistics, retail, F&B, and engineering.
👉 If you’re rethinking your workforce strategy in light of Malaysia’s latest HR regulations, let’s talk. Kanry can help you stay compliant while securing the right talent at scale.
