Recent developments in Malaysia
We understand the challenges of keeping up with regulatory changes. That’s why we actively monitor these changes, so you don’t have to. Read on to discover what’s been happening in the employment landscape in Malaysia.
Universal Application of the Employment Act (2025)
As of January 1, 2025, the Employment Act now applies to all employees, regardless of their salary. This significant change ensures that all employees are entitled to the benefits and protections provided by the Act.
Minimum Wage Increase (2025)
The minimum wage has been increased from RM1,500 to RM1,700 per month, effective February 1, 2025. This adjustment aims to improve the standard of living for workers and is expected to benefit over 1.5 million employees, particularly in urban areas.
Introduction of Flexible Work Arrangements (FWAs) (2025)
In December 2024, the Malaysian government launched new guidelines to support the implementation of flexible work arrangements. These guidelines define FWAs as flexibility in working hours, days, or place of work, and provide a framework for employers and employees to adapt to changing work dynamics.
Overtime Pay Threshold Raised (2025)
A recent amendment to the Employment Act has increased the threshold for employees entitled to overtime pay from RM2,000 to RM4,000 per month. This change ensures that more employees are compensated for additional working hours.
Government Initiatives to Promote Employment (2025)
The Malaysian government has introduced various initiatives to boost employment, including targeted subsidies and tax incentives for businesses that hire local workers. These measures aim to reduce unemployment and support economic growth.
