HR Ministry to explain RM2,500 minimum wage implementation for grads, semi-skilled workers soon, says Ramanan

PETALING JAYA: The Human Resources Ministry will soon provide details on the implementation of a RM2,500 minimum starting monthly wage for semi-skilled jobs and graduates, says Datuk Seri Ramanan Ramakrishnan.

The Human Resources Minister said he welcomed the move, as the new framework would ensure wages better reflected workers' qualifications and skills.

"The ministry will hold a press conference soon to provide clearer details on the implementation mechanism for the RM2,500 monthly minimum wage for semi-skilled jobs and graduates," he said in a statement on Friday (Oct 9).

Ramanan also welcomed the government's decision to raise the national minimum wage from RM1,700 to RM2,000 a month starting June 2027.

“The move represents an increase of RM300 or 17.6%, and more than four million workers will be subject to the new rate,” he said, adding that micro, small and medium enterprises (MSMEs) with annual sales revenue below RM50mil are exempted to allow them time to adjust their business models.

Ramanan also welcomed the commitment by government-linked investment companies (GLICs) and government-linked companies (GLCs) to raise the living wage benchmark from RM3,100 to RM3,400 a month, benefiting some 230,000 workers.

"I urge private employers to also offer fairer wages in line with workers' productivity and contributions," he said.

On the welfare of gig workers, Ramanan said a RM160mil co-financing package between the government and Grab, beginning in 2027, would help improve the net income and welfare of e-hailing drivers and p-hailing delivery riders.

“The package includes higher minimum income rates, assistance with vehicle maintenance and insurance costs, as well as Social Security Organisation (PERKESO) contributions.

“The net income of e-hailing drivers at the median level is expected to increase by up to RM227 per month, while the income of p-hailing delivery riders is expected to increase by up to RM100 per month,” he said.

Ramanan added that the Gig Workers Consultative Council was also negotiating minimum income rates, income calculation formulas and minimum social protection standards for gig workers, which were expected to be finalised early next year.

"In my view, income determination should take into account working hours and the actual costs of carrying out assignments to ensure gig workers earn fairer and more sustainable net incomes," he said.

Meanwhile, Ramanan said skills development would receive a boost through an RM8bil allocation for technical and vocational education and training (TVET) across ministries.

“The Human Resource Development Corporation, with RM3bil in levy funds, will continue to support three million training opportunities, focusing on certification, continuing professional development, upskilling relevant to industry needs, improving training quality and expanding access to training.

“The Skills Development Fund Corporation will provide RM500mil to finance trainees at public and private skills training institutions registered with it,” he said, adding that more than RM40mil would also be provided through HRD Corp to train 8,000 Malaysians in the elderly care sector.

Ramanan said the Bakat Madani programme under TalentCorp would also be expanded, with a target of creating 30,000 new job opportunities in 2027.

He added that the allocation for the Malaysian Indian Community Transformation Unit (Mitra) would be increased by RM50mil to RM150mil, with priority given to skills training and employment opportunities for Indian youths.

"The ministry's priority is to ensure that wage increases are supported by relevant skills and better social protection.

"I call on employers, training providers and platform companies to work together to implement this agenda so that workers can build more secure lives," he said.