Malaysia’s RM1,700 Minimum Wage What It Means for Employers and Recruitments in 2025

Malaysia’s RM1,700 Minimum Wage: What It Means for Employers and Recruitments in 2025

Effective as of 1 February 2025, the Monthly Minimum Wage Order 2024 raised Malaysia’s legal wage floor from RM1,500 to RM1,700. Implemented in two phases, the policy initially applies to businesses with five or more employees and professional services. From 1 August 2025, it extends to all employers nationwide.

For companies based in Kuala Lumpur, especially around Bangsar South, and for forward‑thinking recruitment agencies like Eternity Recruitment, understanding this change is vital. This blog explores how the RM1,700 floor affects hiring, payroll, talent retention, and employer branding in 2025.

📅 Two Steps to RM1,700 Minimum Wage

  • 1 Feb 2025: Employers with ≥ 5 employees or those in MASCO professional services must comply. 

  • 1 Aug 2025: All other employers must raise wages accordingly 

Daily and hourly minima also rise:

  • Daily: RM65.38 for 6‑day weeks, RM78.46 for 5‑day weeks, RM98.08 for 4‑day weeks

  • Hourly: RM8.72 across all arrangements 

Domestic workers and apprentices remain exempt, though revisions are under review peoplex.ai+13aseanbriefing.com+13oneasia.legal+13.

🚀 Why Malaysia Increased the Minimum Wage

The RM1,700 benchmark reflects cost of living pressures, inflation, and Malaysia’s pledge to enhance living standards and worker productivity “…designed to help employees meet their basic needs while contributing to economic productivity.”. 

It’s a step toward reducing wage disparity and aligning with the government’s Madani Economy framework.

💼 Impacts on Employers & Hiring Companies in KL

1. Payroll & Budget Adjustments

Businesses must raise payroll for eligible staff by up to RM200, with smaller firms granted extra time. Payroll systems and contracts may need revision to ensure statutory compliance .

2. Rising Labour Costs

While wage pressure may squeeze profit margins, it also boosts worker morale, retention, and consumer spending—potentially compensating for wage hikes .

3. Enhanced Employer Branding

Meeting or exceeding the wage floor positions your company as compliant, fair‑minded, and attractive to job seekers—vital for hiring companies in KL and hiring service providers in Bangsar South.

📈 Recruitment & Talent Market Implications

A. Expanding the Talent Pool

A higher wage floor empowers lower‑tier workers to pursue advancement through skills‑based recruitment and training. As a recruitment agency, Eternity Recruitment supports this transition by pairing ready‑to‑upskill candidates with progressive employers.

B. Pressure on Entry‑Level Roles

Positions near the RM1,700 level become costlier. Employers may respond by:

  • Automating entry‑level roles

  • Enhancing training and career‑progression paths

  • Partnering with agencies that source candidates with cultural and career fit

C. Competitive Advantage for Pro‑Employer Companies

Firms that respond proactively with fair pay and branding will be preferred by talent. This advantage is especially valuable in competitive zones like KL and Bangsar South.

🛠 What HR Teams and Agencies Must Do

1. Review & Adapt Compensation

Benchmark against RM1,700, but stay flexible based on role, skill, and location. Eternity Recruitment delivers in‑market salary guidance tailored to your needs.

2. Update Contracts & Payroll Systems

Ensure contracts reflect revised pay structures. Abolish disguised allowances and comply with Employment Act demands .

3. Communicate with Staff

Position wage hikes as part of your commitment to worker welfare and organisational growth. Frame it positively to boost morale and engagement.

4. Focus on Skills & Progression

Use skills‑based assessments and career mapping to ensure workers see a path beyond the minimum wage floor.

5. Partner with Strategic Agencies

Work with a street‑smart recruitment agency like Eternity Recruitment to:

  • Access pre‑screened lower‑tier and upskill candidates

  • Lower cost per hire with ongoing payroll compliance

  • Improve talent matching and retention

🌍 The KL & Bangsar South Angle

Urban centres like Bangsar South carry higher costs of living—and wage expectations reflect that. Companies here are increasingly under pressure to go above the minimum wage floor. For growing tech and service firms, partnering with a hiring expert ensures competitive compensation and low talent turnover.

📊 The Bigger Picture: From Compliance to Culture

Quality hiring must transition from a legal compliance task to a strategic move. Embracing the RM1,700 minimum wage demonstrates that your company values its employees, invests in their future, and is here to compete sustainably. That sends a powerful message to both current staff and incoming applicants.

🔚 Why Eternity Recruitment Is Your Ideal Hiring Partner

At Eternity Recruitment, we specialize in:

  • Navigating the RM1,700 minimum wage landscape

  • Providing recruitment services in KL and Bangsar South

  • Matching culturally aligned candidates with forward‑thinking employers

  • Offering real‑time market insights and compensation benchmarking

We help employers not just comply, but thrive—by turning wage regulation into an opportunity to build stronger teams.

✅ Let Eternity Recruitment Help You Hire Right

If you’re ready to adapt to Malaysia’s RM1,700 minimum wage and attract quality talent, Eternity Recruitment is here to help. Partner with a recruitment agency committed to compliance, branding, and long‑term recruitment strategy.

📩 Contact us today

Contact Us Directly

Eternity Recruitment
Email: info@eternity-recruitment.com
Phone Number: +603 3005 7814 / +6016 418 1648
Address: Unit 3A-01 Level 3A,
Wisma N2N, Tower 2, Avenue 3,
No 8, Jalan Kerinchi,
Bangsar South, 59200 Kuala Lumpur
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