MORE than four million workers will receive a 17.6 per cent minimum wage increase to RM2,000 a month from June 2027, while smaller businesses will be exempted from the new rate, Human Resources Minister Datuk Seri R. Ramanan said.
The increase of RM300 from the current RM1,700 rate was announced under Budget 2027, with micro, small and medium enterprises (MSMEs) recording annual sales below RM50 million given room to adjust their business models.
Ramanan said the government also planned to introduce a separate minimum monthly wage of RM2,500 for semi-skilled jobs and graduates, with the Human Resources Ministry (KESUMA) to detail the implementation mechanism in the near future.
The Budget 2027 package also includes measures to improve gig workers’ earnings and expand access to skills training.
A RM160 million financing package involving the government and Grab will be introduced from 2027 to support the net income and welfare of e-hailing drivers and p-hailing delivery riders.
“Median net income for e-hailing drivers is expected to increase by up to RM227 a month, while income for p-hailing delivery riders is expected to rise by up to RM100 a month,” Ramanan said in a statement today.
The Gig Consultative Council is negotiating minimum earnings rates, an income formula and minimum social protection standards for gig workers, with proposals expected to be finalised in early 2027.
On skills development, Ramanan said RM8 billion had been allocated for Technical and Vocational Education and Training (TVET) across ministries. HRD Corp, backed by RM3 billion in levy funds, will support three million training opportunities.
The Skills Development Fund Corporation (PTPK) will provide RM500 million to finance trainees at registered public and private skills training institutions, while more than RM40 million through HRD Corp will fund training for 8,000 Malaysians in the elderly care sector.
Ramanan said the ministry would work to ensure higher worker incomes were matched by relevant skills and stronger social protection as industries adapt to technological change. - October 10, 2026
