Minimum Wage RM2,000: Take-Home Pay From June 2027

The short answer: The minimum wage is RM1,700 today and was announced to rise to RM2,000 a month from June 2027. Under the stated assumptions, estimated take-home pay rises from RM1,501 to RM1,766, so RM264.90 of the RM300 increase reaches the worker after EPF, SOCSO and EIS. MSMEs with sales below RM50,000,000 are exempt from the new rate.

How the deductions change at the new rate

The RM35.10 difference between the gross rise and the estimated extra take-home pay comes from higher employee deductions. EPF follows the employee contribution rate, while SOCSO and EIS move according to PERKESO wage-band tables.

The rise from RM1,700 to RM2,000 is stated as 17.6% of today's minimum wage. For household planning, use the estimated RM264.90 extra cash when deciding how much can go towards rent, food, transport or debt payments, rather than assigning the full RM300 to new spending.

The EPF employee contribution rate is 11%. That contribution is also part of the worker's longer-term savings, while SOCSO and EIS are separate payroll deductions. The amounts shown below are therefore not all money that simply disappears from the value of the wage.

Take-home pay at each minimum wage

These estimates assume an employee below 60 on the standard EPF rate, paid monthly as a full-time worker, with no other allowances or deductions. The table uses the stated employee contribution figures and the stated PCB estimate.

At RM1,700, the listed deductions total RM198.55 and the estimated take-home pay is RM1,501. At RM2,000, total deductions are RM233.65 and estimated take-home pay is RM1,766. Monthly PCB is RM0 at both wage levels in these estimates.

A useful payslip check is to compare the basic wage with the deposited amount, then inspect EPF, SOCSO, EIS and PCB as separate lines. If your net pay differs from the table, look first for allowances, unpaid time, other payroll deductions or a different contribution position.

For a worker preparing for the announced change, review the latest payslip before adjusting standing transfers or household commitments. Mark which deductions already appear every month, then leave space for the higher EPF, SOCSO and EIS amounts shown in the RM2,000 example.

What the current minimum wage covers today

The Minimum Wages Order 2024 sets the current minimum wage at RM1,700 a month. It applies from 1 February 2025 to employers with five or more employees, and from 1 August 2025 to all employers.

Domestic workers and apprentices are outside the Order. That distinction matters when you check whether a wage arrangement falls under the current minimum wage rules. A job title alone does not answer the question; the worker's category and the employer's position under the Order matter too.

For a practical check, look at the employer's headcount, the date the wage was set, and whether the role is domestic work or an apprenticeship. Keep the employment agreement and payslips together so the basic wage can be compared clearly with the applicable rate.

The current rate remains the relevant reference before the new order takes effect. The announced RM2,000 rate is not presented here as an automatic change for every employer because the Budget announcement includes an exemption for certain MSMEs and says it takes effect through a new minimum wages order.

The MSME exemption changes employer planning

Budget 2027 announced that MSMEs whose sales are below RM50,000,000 are exempt from the new RM2,000 rate. For a small employer, sales—not just the number of workers—are therefore an important planning point under the announcement.

If you run a small business, record the sales figure used for the exemption assessment and keep the payroll list separate from other operating costs. Then check the new minimum wages order when it is available, because the announcement says the rate takes effect through that order.

If you are a worker in a small business, ask how the employer has assessed the exemption and what wage rate will appear on the payslip from June 2027. A clear written answer is more useful than relying on a verbal promise, especially when the new rate has an exemption.

The exemption does not erase the current RM1,700 rules. Until the new arrangement applies, employers and workers still need to look at the Minimum Wages Order 2024 and its coverage. Separating the current rule from the announced future rate prevents an early change to payroll based only on a headline announcement.

What the advertised wage does not show about employer cost

An employer's total payroll cost may be higher than the advertised wage because employer contributions can also apply. The employee deductions shown in the table do not show the employer's total payroll cost, so a full employer-cost estimate would require the applicable employer contribution rates and wage bands.

For a useful payroll worksheet, keep separate lines for gross wage, any employer contributions, employee deductions and net pay. Do not subtract the employee's deductions from the employer's cost: those deductions reduce the worker's pay, while any employer contributions are a separate cost if they apply.

A small employer can prepare two scenarios: one using the current RM1,700 wage and one using RM2,000 if the business is not covered by the exemption. For the second scenario, check the applicable contribution requirements and rates before comparing the result with sales, staffing needs and customer prices.

For employees, the employer-cost question is useful when discussing a pay change, but it does not replace checking your own payslip. The amount deposited into your account is the estimated take-home figure in the table, not the employer's total cost.

RM2,500 for semi-skilled jobs and graduates has no date yet

Budget 2027 also announced a RM2,500 monthly minimum for semi-skilled jobs and graduates. No start date was given, so it is not possible to place that figure into the same June 2027 payroll timeline.

Treat the RM2,500 announcement as a separate planning item. A graduate or semi-skilled worker can ask whether the role is expected to fall within that future category, but the announced figure alone does not provide a start date or settle how every job will be classified.

Employers can list affected roles separately from ordinary minimum-wage roles and wait for further details before changing contracts or payroll settings. Workers can keep the job description, offer letter and payslips available when checking whether a future rule applies.

If your pay includes allowances or other deductions, enter each item separately in a salary or budget calculation. This gives you a clearer cash-flow view than replacing your actual payroll lines with the headline minimum wage.

Sources

• Minimum Wages Order 2024
• Ministry of Finance, Budget 2027 speech
• PERKESO, contribution rates