Malaysia raises minimum wage to RM2,000 under 2027 budget plan

Malaysia's statutory minimum wage will rise to RM2,000 per month, marking a substantial increase aimed at improving living standards for lower-income workers across the nation. The wage hike forms part of a broader economic policy framework unveiled in Budget 2027, which prioritises worker welfare and income protection amid evolving labour market conditions.

Gig and platform-based workers, whose employment arrangements fall outside traditional wage agreements, will benefit from a dedicated RM160 million support package. The initiative addresses growing concerns about income security and social protection coverage for the expanding contingent workforce in Malaysia's digital economy.

The budget announcement reflects government efforts to strengthen retirement savings mechanisms and expand social safety nets across different worker categories. The measures aim to ensure that both formal and informal sector workers receive adequate protections as the economy transitions toward greater digitalisation and flexible work arrangements.

Official details regarding implementation timelines and eligibility criteria for the gig worker scheme are expected to be clarified through government statements and regulatory announcements in coming weeks.