The government has announced an increase in the national minimum wage from RM1,500 to RM1,700, effective February 1, 2025. This was revealed by Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2025 in the Dewan Rakyat on Friday.
In his speech, Anwar, who also holds the position of Finance Minister, acknowledged that smaller businesses might face challenges in adjusting to the new wage rate. Therefore, companies employing fewer than five workers will be granted a six-month grace period before they are required to comply with the new minimum wage law, with the deadline set for August 1, 2025.
According to TheStar, alongside the minimum wage increase, Anwar also announced that the Human Resources Ministry will be releasing a set of guidelines on recommended starting salaries for specific technical and professional roles. The guidelines suggest a starting salary of RM2,290 for industrial and production technicians, RM3,380 for mechanical engineers, and RM2,985 for professional creative content designers. These measures aim to standardize salaries across industries and ensure that skilled workers are adequately compensated.
Another highlight of Budget 2025 is the full implementation of the Progressive Wage Policy, following a successful pilot program earlier this year. Anwar announced that RM200 million has been allocated for the initiative, which is expected to benefit 50,000 workers. The policy is designed to encourage wage growth and improve the livelihood of workers in various sectors.
Anwar also outlined plans to address poverty, with RM250 million allocated to the People's Income Initiative (IPR) for 2025. This initiative seeks to enhance the income of individuals in the extreme poverty category by providing them with opportunities to participate in income-generating activities.
The allocation will ensure that more people from the extreme poor group are included in the IPR programme to improve their financial situation, Anwar said during his speech.
The Prime Minister also announced the continuation of the Skim Perlindungan Tenang, in collaboration with Bank Negara and the insurance and takaful sectors. This scheme will provide two million Sumbangan Tunai Rahmah recipients with RM30 vouchers to help cover the cost of Perlindungan Tenang products, which offer essential insurance coverage for death, personal accidents, and general risks like fire and floods.
The 2025 budget, with its focus on improving wages, addressing poverty, and providing essential insurance coverage, reflects the governments commitment to uplifting the socioeconomic conditions of Malaysians across the board.
Source: The Star
