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The framework will use Malaysia’s Occupational Standards (MASCO) to guide salaries according to job categories, academic qualifications, and skill levels, with the government also planning legislative changes to support its future implementation.
Malaysia’s Ministry of Human Resources (KESUMA) is finalising a basic salary framework starting at RM2,500 for graduates and semi-professional workers, with implementation targeted for June 2027.
In a Facebook post on 16 October 2026, KESUMA said the framework follows the announcement made under Budget 2027 and aims to bring salaries more in line with workers’ qualifications and skills.
YB Dato’ Sri Ramanan Ramakrishnan, Minister of Human Resources outlined the framework at a press conference held at the Social Security Organisation (PERKESO) Tower in Putrajaya on the same day.
Under the proposed approach, the initial implementation for graduates will cover Malaysian Standard Classification of Occupations (MASCO) levels 1 to 3. The framework for semi-professional workers will be aligned with a skills-based salary structure, extending coverage to MASCO level 8.
According to KESUMA, the framework is targeted for publication in June 2027, with salary rates to be updated using data from the Department of Statistics Malaysia (DOSM) through the e-MASCO portal.
Salary guidelines to reflect qualifications and skills
In a separate Facebook post, Minister Ramanan said the salary guidelines would be based on job categories, academic qualifications, and skill levels through the MASCO system. He said the framework is intended to give employers clearer guidance when determining salaries, while helping workers receive recognition that reflects their qualifications, skills, and responsibilities.
The minister added that graduates invest time, effort, and money in their education and skills development, and that their qualifications should be reflected in their salaries.
He also cited Australia and the UK as examples of countries that use job classification as a reference point in their respective salary systems.
Legislative changes and wage monitoring planned
Beyond the initial framework, KESUMA is planning to amend the National Wages Consultative Council Act 2011 (Act 732) to enable a minimum salary for graduates to be set in the future.
For now, the ministry intends to begin with the salary framework before strengthening it through legislative amendments.
KESUMA is also finalising an e-Wages module to improve the monitoring of salary payments and compliance with labour laws.
Minister Ramanan said the mechanism would help ensure workers are paid on time and at the agreed rate, while reducing cases of delayed or unpaid salaries.
The proposed salary framework comes alongside Malaysia’s planned increase in the national minimum wage from RM1,700 to RM2,000 a month from June 2027. The increase is expected to benefit more than four million workers, while micro, small, and medium-sized enterprises (MSMEs) with annual sales below RM50mn will be exempted from the new requirement.
While the minimum wage sets a baseline for eligible workers, the proposed RM2,500 framework is intended to provide salary guidance linked to qualifications and skills.
As Malaysia prepares to roll out the framework, employers will need to watch for further details on the applicable job categories, salary rates, and implementation requirements. The final guidelines and any subsequent legislative amendments will help clarify how the framework will operate in practice.
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Lead image / KESUMA's Facebook
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