09/10/2026
Yes, foreign employees are also covered by Malaysia's minimum wage system.
**Legal Basis and Scope of Application**
Under Malaysia's *Minimum Wages Order 2024*, the current minimum wage standard of RM1,700 per month applies to all private-sector employees, including non-citizens (foreign workers); only domestic servants are excluded.
The government has clearly stated that the minimum wage policy must not discriminate against any employee based on nationality, aligning with the International Labour Organization (ILO) Convention No. 100 (Equal Remuneration Convention), which Malaysia ratified in 1997. Furthermore, legal provisions such as Section 69F of the *Employment Act 1955* prohibit discrimination between local and foreign employees.
**Key Points**
* **Scope of Coverage:** Foreign workers (holding valid work permits), contract workers, apprentices, and eligible graduates are all covered.
* **Exclusions:** Only domestic servants (such as maids) are currently excluded.
* **Basic Wage Requirements:** Employers are prohibited from offsetting basic pay with allowances or benefits; an employee's basic wage must independently meet the minimum wage threshold.
**Policy Controversy**
Although current laws cover foreign employees, some politicians (such as Lim Guan Eng and Chong Zhemin) have publicly called for foreign workers to be excluded from the next round of minimum wage hikes (proposed to reach RM2,000) to alleviate operational cost pressures on SMEs that rely on foreign labor. However, as of now, the government's official policy stance remains that the minimum wage system applies equally to both foreign and local employees. [22:45, 10/9/2026] Excellent Human Resource-Raymond: According to the latest updates from October 9, 2026, Malaysia's minimum wage policy is set for a major adjustment. The key change involves raising the minimum wage from the current RM1,700 per month to RM2,000; however, micro, small, and medium-sized enterprises (MSMEs) will be granted a temporary exemption.
📈 Latest Policy Updates
· Current Standard: The national statutory minimum wage is currently RM1,700 per month, applicable to all covered private-sector employers since August 1, 2025.
· Adjustment Plan: While presenting the 2027 National Budget, Prime Minister Anwar announced that the new standard would be raised to RM2,000 per month. Expected to take effect in June 2027, this move will benefit over 4 million employees.
· MSME Exemption: The Cabinet has agreed to temporarily exempt MSMEs from this wage hike to alleviate pressures regarding operational costs and economic challenges. The government will assist in raising employee wages through other measures, such as wage subsidies under the "Progressive Wage Policy."
https://www.thestar.com.my/news/nation/2026/10/09/budget-2027-minimum-wage-to-rise-to-rm2000-from-june-2027-says-anwar
