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RM 2,000 Minimum Wage from June 2027: Who Is Exempt, and What Is e-Wages?
Malaysia's minimum wage goes up from RM 1,700 to RM 2,000 a month on 1 June 2027. Businesses with annual sales below RM 50 million are exempt from the increase for now, but group sales count together, and a new e-Wages system will start checking that wages are paid on time from June 2027.
This guide is for clinic, salon, beauty centre and spa owners. It explains who must pay RM 2,000, how to check whether you are exempt, what e-Wages is, and how to prepare your payroll. It is general information as at October 2026, not legal advice.
Who must pay the RM 2,000 minimum wage?
The new rate was announced in Budget 2027 on 9 October 2026. On 16 October, Human Resources Minister Datuk Seri R. Ramanan explained how it will work:
| Your business | From 1 June 2027 |
|---|---|
| Annual sales of RM 50 million or more | Pay at least RM 2,000 a month |
| Annual sales below RM 50 million | Exempt from the increase for now, so keep paying at least RM 1,700 |
| Below RM 50 million, by choice | You may move to RM 2,000 voluntarily |
The minimum wage covers all workers, including non-Malaysian staff.
How do group sales count towards the RM 50 million?
The minister said companies are assessed as a group. A subsidiary is counted together with its holding or parent company, based on total turnover.
So a single salon with RM 2 million in sales is well below the line. But a clinic that belongs to a bigger healthcare group may have to pay RM 2,000, even if the clinic itself is small.
How long the exemption lasts has not been announced yet. The Malaysian Employers Federation (MEF) has asked for clear eligibility rules, so watch for official guidelines before June 2027.
What is e-Wages?
e-Wages is a new government system planned for June 2027. It gives the Human Resources Ministry a live dashboard to check that:
- Employers follow minimum wage rules
- Workers are paid on their payday
The ministry will also use it to collect better wage data across job types. The full details of what employers must submit have not been published yet.
Under the Employment Act 1955, wages must be paid no later than the 7th day after the end of each wage period. If you sometimes pay late, now is a good time to fix that.
How much more will RM 2,000 cost per worker?
If you are not exempt, or you choose to pay RM 2,000, here is a made-up example for one Malaysian worker under 60 moving from RM 1,700:
| Made-up example, per worker | Each month |
|---|---|
| Higher wage | RM 300 |
| Employer EPF (13%) on the extra RM 300 | RM 39 |
| Extra cost before SOCSO and EIS | RM 339 |
SOCSO and EIS go up a little too, because they follow wage bands. Overtime pay, which is based on the basic wage, also goes up.
Want to check one payslip? Our free Malaysia payroll calculator works out EPF, SOCSO, EIS and PCB and makes a payslip PDF.
5 ways to get your payroll ready before June 2027
- Check your sales, including your group. Use your audited accounts or tax return, and add up related companies.
- List staff paid below RM 2,000. Basic salary is what counts, not commission or allowances.
- Plan the cost. Price changes, service packages or targets may need adjusting before June.
- Pay on time, by bank transfer. It keeps a clear record and matches what e-Wages will look for.
- Keep payroll records tidy. Payslips, EPF, SOCSO and EIS should all match, month after month.
How Techub helps with payroll
Techub's systems for salons, beauty centres, spas and clinics include payroll:
- Basic salary, commission from your POS, allowances and overtime in one monthly payroll
- EPF, SOCSO, EIS and PCB worked out for each staff member
- Payslips for every staff member, ready on payday
- Reports by staff and month, so your accountant has what they need
Plans start from RM 99/month per outlet with our Welcome offer (12 months plus 2 months free, only RM 84.86 a month on average) for the first 250 users until 31 Dec 2026, or RM 178 month by month, and new users get the first 3 months free, including installation and staff training. See pricing for details.
Read more about the rest of the changes in our Budget 2027 guide.
Sources: The Star, Bernama, PwC Malaysia.
Questions people ask
When does the RM 2,000 minimum wage start in Malaysia?
On 1 June 2027. The minimum wage rises from RM 1,700 to RM 2,000 a month, as announced in Budget 2027.
Is my small business exempt from the RM 2,000 minimum wage?
If your annual sales are below RM 50 million, you are exempt from the increase for now and keep paying at least RM 1,700. Sales are counted for the whole group, so a company is assessed together with its parent or holding company.
What is e-Wages in Malaysia?
e-Wages is a Human Resources Ministry system planned for June 2027. It gives the ministry a live dashboard to check that employers follow minimum wage rules and pay workers on their payday.
See it running in your business
Want payroll that is ready for the new minimum wage? Book a free demo with us on WhatsApp.
From RM 99/month per outlet · 3 months free
