HR Minister Says Minimum Wage is Not “Starting Pay”, Tells Companies to Offer Higher to M’sian Graduates

Human Resources Minister Steven Sim Chee Keong recently called out certain companies in Malaysia which pay local graduates the minimum wage, saying that minimum wage is not “starting pay”.

Accordingly, he stressed that local companies shouldn’t pay Malaysian graduates or skilled workers the minimum wage as their starting pay.

Stressed that companies shouldn’t pay local graduates minimum wage as their starting pay

Taking to his official X (formerly Twitter) account, Steven shared snippets of his speech during the ‘Insight Edge: Unveiling AI, Digital & Green Economy’s Impact on Malaysia’s Workforce‘ programme held by the Ministry of Human Resources (KESUMA) and TalentCrop at the Asia School of Business in Kuala Lumpur on 10 October.

In the video, Steven said that there are “some industries” in our country that assume the minimum wage is the starting pay due to misunderstanding or to take advantage of Malaysia’s minimum wage Act.

The Human Resources Minister further elaborated that the minimum wage is supposedly for the most basic of tasks, and employers shouldn’t pay local graduates with the minimum wage.

He added that the Government doesn’t stop employers from paying more, as minimum wage is just the floor guide.

Steven asserted that employers are compelled to pay EPF for their employees and urged companies to pay more bonuses and incentives to their workers.

Watch the video here:

The RM1,700 minimum wage starting February 2025 will be uniform across Malaysia regardless of state and region

Besides that, following the Federal Government’s announcement that the minimum wage will be increased from RM1,500 to RM1,700 starting February next year as per Budget 2025, Steven, via KESUMA, released a press statement reiterating and reminding employers in Malaysia that the minimum wage shouldn’t be the starting pay, especially for graduates and skilled workers.

Meanwhile, Steven also stressed that the new RM1,700 minimum wage will be uniform throughout the country and is poised to increase the people’s floor income by 13.3%.

So, what do you guys think of the Human Resources Minister’s statement? Share your thoughts with us in the comments.

Also read: Budget 2025: RM1.5k Minimum Wage to be Increased to RM1.7k, Effective February 2025