RM2,500 Starting Wage for Graduates and Semi-Skilled Workers Coming Soon, Says HR Minister Ramanan

Malaysia is preparing to introduce a RM2,500 minimum starting monthly wage for graduates and semi-skilled workers under a new workers' income framework announced in Budget 2027.

Human Resources Minister Datuk Seri Ramanan Ramakrishnan welcomed the initiative, saying the framework aims to ensure salaries better reflect workers' qualifications and skills.

In a statement on October 9, Ramanan said the Human Resources Ministry would provide further information about the implementation mechanism for the RM2,500 starting wage.

While the initiative has been announced, the exact effective date and detailed implementation requirements were not specified in the report published by The Star.

The announcement comes alongside other Budget 2027 measures aimed at improving workers' incomes, strengthening social protection and expanding skills training opportunities across Malaysia.

RM2,500 Starting Wage for Graduates and Semi-Skilled Workers

The RM2,500 starting wage framework aims to ensure that wages better reflect workers' qualifications, skills and contributions.

According to Ramanan Ramakrishnan, the Human Resources Ministry will provide further information about how the framework will be implemented.

The initiative is separate from Malaysia's national minimum wage increase, which will raise the monthly rate from RM1,700 to RM2,000 starting in June 2027.

The national minimum wage increase is expected to benefit more than four million workers. Eligible micro, small and medium enterprises (MSMEs) with annual sales below RM50 million will be exempted from the new RM2,000 rate to give them more time to adjust their business models.

Meanwhile, government-linked investment companies (GLICs) and government-linked companies (GLCs) have committed to increasing their living-wage benchmark from RM3,100 to RM3,400 per month. The move is expected to benefit approximately 230,000 workers.

Ramanan also urged private-sector employers to offer fairer wages in line with workers' productivity and contributions.

RM160 Million Package to Support Gig Workers

Budget 2027 also includes a RM160 million co-financing package between the government and Grab, scheduled to begin in 2027.

The package aims to improve the income and welfare of e-hailing drivers and p-hailing delivery riders. It includes higher minimum income rates, assistance with vehicle maintenance and insurance costs, as well as contributions to the Social Security Organisation (PERKESO).

According to Ramanan, the net income of e-hailing drivers at the median level is expected to increase by up to RM227 per month, while p-hailing delivery riders could receive an increase of up to RM100 per month.

The Gig Workers Consultative Council is also negotiating minimum income rates, income calculation formulas and minimum social protection standards. These details were expected to be finalised early the following year, according to the report.

Ramanan said income calculations should consider working hours and the actual costs of completing assignments to help gig workers earn fairer and more sustainable incomes.

RM8 Billion Allocated for Skills Development and Training

The government has allocated RM8 billion for technical and vocational education and training (TVET) across ministries under Budget 2027.

The Human Resource Development Corporation (HRD Corp) will use RM3 billion in levy funds to support three million training opportunities. These will focus on certification, continuing professional development, industry-relevant upskilling, improving training quality and expanding access to training.

The Skills Development Fund Corporation will provide RM500 million to finance trainees at registered public and private skills training institutions.

More than RM40 million will also be provided through HRD Corp to train 8,000 Malaysians in the elderly care sector.

In addition, the Bakat Madani programme under TalentCorp will be expanded, with a target of creating 30,000 new job opportunities in 2027.

The allocation for the Malaysian Indian Community Transformation Unit (Mitra) will also increase by RM50 million to RM150 million, with priority given to skills training and employment opportunities for Indian youths.

The Human Resources Ministry said its priority was to ensure that wage increases are supported by relevant skills development and stronger social protection.

FAQs

What is the RM2,500 starting wage for graduates and semi-skilled workers?

It is a starting monthly wage framework announced under Budget 2027 for graduates and semi-skilled workers. The initiative aims to better align wages with workers' qualifications and skills.

When will the RM2,500 starting wage take effect?

The Human Resources Ministry said it would provide further information about the implementation mechanism.

Is the RM2,500 starting wage the same as Malaysia's national minimum wage?

No. The RM2,500 starting wage framework concerns graduates and semi-skilled workers, while Malaysia's national minimum wage is scheduled to increase from RM1,700 to RM2,000 per month in June 2027.

Who announced the RM2,500 starting wage framework?

The framework was announced as part of Budget 2027, presented by Prime Minister Datuk Seri Anwar Ibrahim. Human Resources Minister Datuk Seri Ramanan Ramakrishnan subsequently welcomed the initiative and said the ministry would provide more information about its implementation.

What other worker support measures were announced in Budget 2027?

Other measures include a RM160 million package for gig workers, RM8 billion for TVET, additional skills training funds, an increase in the GLIC and GLC living-wage benchmark, and a target of 30,000 new jobs through Bakat Madani in 2027.

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