8 October 2026
Minimum Wage Malaysia 2026: RM1,700 Take-Home Pay
Malaysia's minimum wage is RM1,700 a month (RM8.72 an hour). See the EPF, SOCSO and EIS deducted from it and the take-home pay, plus who is covered.
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Malaysia's national minimum wage is RM1,700 a month, or RM8.72 an hour, under the Minimum Wages Order 2024. It took effect on 1 February 2025, with a later start of 1 August 2025 for employers with fewer than five employees.
What RM1,700 looks like on a payslip
The table uses our salary engine for a Malaysian employee under 60 with no other income. At RM1,700 a month no monthly income tax (PCB) is deducted, so the only deductions are EPF, SOCSO and EIS.
| Item | Monthly amount |
|---|---|
| Gross monthly wage | RM 1,700.00 |
| EPF employee (11%) | − RM 187.00 |
| SOCSO employee (0.5%) | − RM 8.50 |
| EIS employee (0.2%) | − RM 3.40 |
| Income tax (PCB) | RM 0.00 |
| Take-home pay | RM 1,501.10 |
| Total cost to employer (with employer EPF, SOCSO, EIS) | RM 1,954.15 |
EPF, SOCSO and EIS at the minimum wage
The employee pays 11% EPF (RM 187.00), 0.5% SOCSO (RM 8.50) and 0.2% EIS (RM 3.40). On top of the RM1,700 wage, the employer pays 13% EPF (RM 221.00), 1.75% SOCSO (RM 29.75) and 0.2% EIS (RM 3.40), so the real monthly cost of one minimum-wage employee is about RM 1,954.15.
Hourly and daily rate
The Order sets the minimum hourly rate at RM8.72, which comes from RM1,700 over the 195 hours in an average month of a 45-hour week. On the common 26-working-day method, RM1,700 a month is about RM 65.38 a day.
Who is covered
The minimum wage applies to employees under a contract of service, whether full-time or part-time, local or foreign. Domestic workers are not covered by the Order.
Budget 2027: RM2,000 from June 2027
Budget 2027, tabled on 9 October 2026, announced a rise in the minimum wage from RM1,700 to RM2,000 a month from June 2027, with micro, small and medium enterprises that have annual sales below RM50 million reported as exempt. A separate RM2,500 baseline for semi-skilled workers and graduates was also announced, with no date. RM1,700 stays the legal minimum until the new rate is gazetted, so confirm the figure with the Ministry of Human Resources before using it for payroll.
Check your own pay
Enter any salary in the calculator to see your own EPF, SOCSO, EIS, tax and take-home pay.
Frequently asked questions
What is the minimum wage in Malaysia in 2026?
RM1,700 a month, or RM8.72 an hour, under the Minimum Wages Order 2024. Budget 2027 announced a rise to RM2,000 from June 2027, but RM1,700 stays the legal minimum until the new rate is gazetted.
Will the minimum wage be RM2,000 in 2027?
Budget 2027 announced a rise from RM1,700 to RM2,000 a month from June 2027. Micro, small and medium enterprises with annual sales below RM50 million were reported as exempt, and a separate RM2,500 baseline for semi-skilled workers and graduates was announced without a date.
What is the take-home pay on a RM1,700 salary?
About RM 1,501.10 a month for a Malaysian employee under 60, after RM 187.00 EPF, RM 8.50 SOCSO and RM 3.40 EIS. No monthly income tax is deducted at this level.
How much EPF is deducted from a RM1,700 salary?
The employee share is 11%, which is RM 187.00. The employer pays a further 13%, which is RM 221.00, on top of the wage.
What is the minimum wage per hour in Malaysia?
RM8.72 an hour under the Minimum Wages Order 2024.
Does the minimum wage apply to foreign workers?
Yes, it applies to local and foreign employees under a contract of service. Domestic workers are not covered by the Order.