The government has agreed to increase the minimum wage rate from RM1,500 currently to RM1,700, with effect from Feb 1, 2025, said Anwar Ibrahim.

While tabling Budget 2025 in the Dewan Rakyat on Friday, the Prime Minister also said that employers with less than five workers will be given a six-month deferment, until Aug 1, 2025, reported The Star on Friday.

Anwar, who is also Finance Minister, said that the Human Resources Ministry will also publish a set of guidelines for the starting salaries of industrial and production technicians (RM2,290), mechanical engineers (RM3,380) and professional creative content designers (RM2,985).

He also said that following the pilot programme for the Progressive Wage Policy in June, it will be fully implemented next year, with a budget of RM200mil benefiting 50,000 workers.

Meanwile, Anwar said RM250mil would be allocated to the People`s Income Initiative (IPR) to eradicate extreme poverty.

“Next year, RM250mil will be allocated to increase the participation of more individuals from the extreme poor group in the IPR programme to enhance their income,” he said.

He also said that Skim Perlindungan Tenang will continue in collaboration with Bank Negara and the insurance and takaful industries benefitting some two million Sumbangan Tunai Rahmah recipients.

Those who are eligible can claim a RM30 voucher to partially cover the cost of Perlindungan Tenang products offering coverage for death, personal accidents, and general risks such as fire and floods.