20th October 2026 - 4 min read
The Human Resources Ministry aims to publish a guideline in June 2027 that asks employers to start graduates and semi-skilled workers on RM2,500 a month. The government plans to amend the National Wages Consultative Council Act 2011 (Act 732), so graduate pay at that level can become required later.
If you’re graduating in 2027, or you hold a Malaysian Skills Certificate (SKM), the RM2,500 could apply to your next job offer. An employer won’t be breaking the law by offering less until the change is passed.
The ministry’s starting pay guidelines follow the Malaysian Standard Classification of Occupations (MASCO). For graduates, they cover jobs in MASCO categories 1 to 3, which include managers, professionals, and technicians.
| Qualification | How The RM2,500 Applies |
| Degree, diploma, or Malaysian Advanced Skills Diploma (Level 5) | Graduate starting pay guideline for MASCO categories 1 to 3 |
| Malaysian Skills Diploma (Level 4) or SKM Level 3 | Included with graduates, as a guideline first |
| SKM Levels 1 and 2 | Semi-skilled starting pay guideline |
For now, all of these are only guidelines. A guideline tells employers what they should pay, but they don’t have to follow it. Once the law is changed, the government plans to make employers pay graduates at least RM2,500. It hasn’t said if this will also apply to people with a Malaysian Skills Diploma or an SKM. The ministry will also list the usual starting pay for each job on its e-MASCO website.
Act 732 is the law that sets the minimum wage, which is the lowest pay an employer can give you. Right now, this law doesn’t let the government set a higher minimum wage just for people with a degree or diploma. So the law has to be changed first before employers can be made to pay graduates RM2,500. Human Resources Minister Datuk Seri R. Ramanan said the law change would come as soon as possible. He didn’t say when.
The guidelines come in with the new Minimum Wages Order that raises the minimum wage to RM2,000. Micro, small, and medium firms with yearly sales below RM50 million are exempt from the RM2,000 rate for now and can keep paying RM1,700. If a firm belongs to a group, the whole group’s sales count, so a small subsidiary of a big group can’t use the exemption. The ministry hasn’t said if the same exemption will apply to the RM2,500 starting pay once it becomes law.
If you’re joining the civil service, the RM2,500 for fresh graduates is a Budget 2027 measure. The Public Services Commission (SPA) says an official notice will set out the timeline and if allowances count towards the RM2,500.
RM2,500 is your basic pay before deductions. The table shows what an employee under 60 takes home at today’s EPF, SOCSO (also called PERKESO), and Employment Insurance System (EIS) rates. The RM2,000 column matches our RM2,000 minimum wage take-home pay.
| Item | Pay At RM2,000 | Pay At RM2,500 |
| Basic pay | RM2,000.00 | RM2,500.00 |
| EPF (11%) | – RM220.00 | – RM275.00 |
| SOCSO | – RM9.75 | – RM12.25 |
| EIS | – RM3.90 | – RM4.90 |
| Take-home pay | RM1,766.35 | RM2,207.85 |
On RM2,500, you’d take home RM441.50 a month more than someone on the RM2,000 minimum wage. If you’re single with no other income, there’s no monthly tax deduction (PCB) on RM2,500.
Most employees also pay for PERKESO’s Lindung 24 Jam accident cover, which takes another 0.75% of your pay. The window to opt out closed on 31 August 2026 and won’t reopen. If it’s your first job, you’re enrolled automatically and can’t opt out.
On RM2,500, PERKESO’s contribution table sets it at RM18.35 a month, so you’d take home RM2,189.50. The rate goes up to 1% in June 2028 and 1.25% in June 2031. If you start in June 2027, your deduction rises to about RM25 a month a year later.
If you’re offered less for a job that needs your diploma or degree, you can show the employer the ministry’s guidelines when you negotiate. The guideline isn’t law yet, so an employer can still say no. Check the e-MASCO benchmark for your job once it’s published in June 2027. Ask the employer if the offer is basic pay or includes allowances, because the RM2,500 refers to your basic pay. When your first salary comes in, our guide to what to expect on your first payslip helps you check it.
Follow us on our official WhatsApp channel for the latest money tips and updates.
Christina writes about personal finance with an eye for making the complicated feel straightforward. She is drawn to the everyday money decisions people face and genuinely enjoys finding the clearest way to explain them. Between articles, she is probably napping, on a hiking trail, or terrorising her sister’s cats.
Comments (0)