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New e-Wages System to Track Compliance With RM2,000 Minimum Wage From June 2027
The government plans to use a new digital system to make sure employers pay the higher minimum wage. Human Resources Minister Datuk Seri R. Ramanan said an e-Wages system with a live dashboard will be introduced in June 2027 to monitor compliance with minimum wage rules, according to The Star on 16 October 2026.
What e-Wages will do
Based on Ramanan's comments:
- The system will provide a live dashboard to check that companies comply with wage regulations.
- It aims to ensure employees receive their wages on time on their designated payday.
- It will help the government gather more complete wage data, particularly on skilled workers across occupational categories.
- Wage monitoring will cover all workers, including non-Malaysian employees.
Ramanan said more than four million workers are expected to benefit from the minimum wage increase, but data limitations make it hard to determine how many skilled workers would benefit, which is why the e-Wages system is needed.
The wage changes
The minimum wage will rise from RM1,700 to RM2,000 a month starting in June 2027. Micro, small and medium enterprises with annual sales below RM50 million are exempted to give them time to adjust.
Ramanan clarified that the RM50 million threshold will be assessed at group level. If a subsidiary belongs to a larger group, the whole group's turnover is considered. He also encouraged firms below the threshold to adopt RM2,000 voluntarily.
A starting basic salary framework of RM2,500 a month will also be introduced for graduates and semi-skilled workers.
Key takeaway: the government wants not just higher wage floors, but better data and enforcement to make sure the new rules are actually followed.
Starting salary guidelines
The ministry is preparing starting salary guidelines based on the Malaysia Standard Classification of Occupations (MASCO). For graduates, initial guidelines will cover MASCO categories 1 to 3, including degree and diploma holders. For semi-skilled workers, the framework will align with skills-based guidelines, including holders of Malaysian Skills Certificate Levels 1 and 2. The guidelines are targeted for publication alongside the new Minimum Wages Order in June 2027.
The government also intends to amend the National Wages Consultative Council Act 2011 to include educational qualifications as a factor in determining minimum wages, which could enable mandatory minimum wages for graduates in future.
Some employers unhappy
Ramanan acknowledged that "some companies are not entirely happy with the decision", but said the National Wages Consultative Council reviewed extensive data before deciding. He said the policy was calculated so the economy could sustain higher wages without excessive pressure on businesses or significant inflation. Under the 13th Malaysia Plan, the government targets a median salary of RM3,500 by 2030.
SME groups have warned that exempted firms may still face pressure to raise pay, as we reported in our report on SMEs and the wage exemption.
What it means for Malaysians
- Workers can expect more systematic monitoring of whether they are paid correctly and on time.
- Graduates and skilled workers may benefit from clearer starting salary references.
- Employers should prepare payroll systems and records, since digital monitoring means non-compliance is easier to spot.
- Group companies with subsidiaries should check whether their combined turnover crosses the RM50 million threshold.
What to watch
Watch for the e-Wages framework details, the amendment to the wages council act and the Minimum Wages Order. Employers will want clear guidance on reporting requirements well before June 2027.