KUALA LUMPUR: Government-linked investment companies (GLICs) in Malaysia have collectively adopted a living wage policy for all permanent employees, ensuring that every permanent Malaysian employee now earns more than the monthly living wage.
The GLICs that have fulfilled the commitment to the living wage policy, where all their permanent Malaysian employees now earn more than the monthly living wage, include Khazanah Nasional Bhd, Employees Provident Fund (EPF), Retirement Fund Inc. (KWAP), Armed Forces Fund Board (LTAT) and the Pilgrims’ Fund Board (TH).
Finance Minister II Datuk Seri Amir Hamzah Azizan said delivering on the vision of Madani Economy requires a whole-of-nation approach, with the corporate sector playing a vital role.
“The collective move by GLICs to implement a living wage is an important step to ‘raise the floor’, ensuring that growth is both inclusive and firmly rooted in the well-being of Malaysians,” he said in a statement.
The implementation of the living wage commitment is part of the GEAR-uP initiative led by the Ministry of Finance (MoF) under the Madani Economy framework that seeks synergised efforts across GLICs to catalyse growth in key economic sectors in Malaysia, with the dual objectives of “raising the ceiling” and “raising the floor”.
Based on a comparative analysis of industry wages and cost of living standards outlined in the Belanjawanku 2024/2025 Expenditure Guide, the benchmark living wage has been set at approximately RM3,100 monthly, which is higher than the RM1,700 monthly minimum wage announced in Budget 2025 and implemented on Feb 1, 2025.
The Belanjawanku Expenditure Guide, which was jointly developed by EPF and the Social Wellbeing Research Centre, University Malaya, provides estimates of minimum monthly expenses needed for a good standard of living.
The living wage approach empowers employers to offer total compensation that goes beyond base salary, encompassing a range of benefits that enhance an individual’s quality of life, including healthcare, retirement plans, and savings mechanisms.
Pursuant to the earlier commitment given to this initiative, PNB has adjusted the salary for all its workforce, ensuring that all employees now earn above the living wage.
PNB president and group chief executive Datuk Abdul Rahman Ahmad said PNB’s focus now is on its key strategic GLCs, for them to firstly adopt the minimum wage policy and then implement the policy based on the timelines agreed.
“Since 2023, we have been constantly engaging with our GLCs on the living wage framework, proactively urging them to commit to the Living Wage Policy and accelerate their implementation.
“To date, three of our strategic companies have established a Living Wage Policy, and we target all our strategic companies to adopt and commit to the Living Wage Policy by 2026,” he noted.
PNB introduced its Living Wage Framework in 2023 within the organisation as a commitment to social responsibility and employee well-being.
In Jan 2025, it refined its voting guidelines, encouraging investee companies to explore and adopt the framework.
PNB said it recognises that the diverse and complex industries in which GLCs and Corporate Malaysia operate require different timelines for implementation but believes all companies should commit to a clear path to ensure all their employees earn a fair wage that supports an acceptable standard of living.
In line with its Malaysia strategy anchored on the “A Nation That Creates” framework to advance Malaysia’s next phase of economic transformation, Khazanah is committed to supporting the aspirations of the Madani Economy, particularly in raising both the floor and the ceiling for Malaysians.
Khazanah has fulfilled its commitment to provide a living wage for its employees and is actively engaging with the core holdings within its portfolio to embed living wage practices across their operations.
Khazanah managing director Datuk Amirul Feisal Wan Zahir said Khazanah is committed to leading by example and has fully implemented a living wage within its own operations, while 10 of its core holdings have committed to implementing the living wage.
“We will continue to promote greater awareness and adoption with the rest of our portfolio companies.
“Supporting the living wage is key in boosting productivity and building stronger and more resilient businesses that contribute to a stable, equitable and sustainable development path for Malaysia,” he added.
EPF has also committed to the implementation of a Living Wage Framework across the organisation, guided by its own Belanjawanku Expenditure Guide, a nationally recognised benchmark for a decent standard of living in Malaysia.
EPF said this move is closely aligned with the government’s aspirations under the Madani Economy framework to “raise the floor” by improving wage levels and increasing the labour share of income to 45 per cent.
“As the custodian of retirement savings for over 16 million Malaysians, we believe the responsibility to drive income adequacy starts with us,” EPF chief executive officer Ahmad Zulqarnain Onn said.
He said by ensuring that all employees earn a living wage, EPF is reinforcing its mission to build a resilient and inclusive retirement ecosystem, one that begins with fair pay today to secure adequate income tomorrow.
“This commitment affirms the dignity of work and sets a meaningful standard for employers across the country.
“Ultimately, improved wages uplift quality of life and translate into stronger retirement savings, ensuring future needs are met with dignity,” he said.
Ahmad Zulqarnain added that the EPF will also collaborate with its investee companies and ecosystem partners to encourage adoption of similar frameworks, supporting a more inclusive and equitable economic future for all Malaysians.
Meanwhile, KWAP is reaffirming its commitment to sustainable and inclusive economic progress, having implemented a living wage across its organisation and subsidiaries.
KWAP views this step as an enhancement of employee welfare and as a strategic move aligned with long-term national goals under the Madani Economy framework.
KWAP chief executive officer Datuk Nik Amlizan Mohamed said the implementation of a living wage is a clear expression of its commitment to uplift the standard of living of our employees in line with national aspirations.
“As the custodian of Malaysia’s largest public sector pension fund, we are focused not only on delivering sustainable financial returns but also on supporting the people who enable our long-term value creation,” she said.
LTAT’s commitment to the RM3,100 living wage reflects its enduring mission to protect and uplift those who serve the nation — both in uniform and within the workforce.
The fund stated that this pledge is not merely a financial benchmark but a reaffirmation of its belief that all who contribute to national service, directly or indirectly, deserve a life that is both decent and dignified.
LTAT is addressing this matter through a comprehensive review in 2025, which goes beyond salary structure revisions to include non-salary elements aimed at holistically supporting staff welfare.
These enhancements are part of LTAT’s broader strategy to strengthen long-term security for every individual under its care.
Importantly, LTAT said its commitment extends beyond its employees to their families, recognising that a dignified life must encompass household well-being, not just individual earnings.
LTAT chief executive Mohammad Ashraf Md. Radzi said that for LTAT, whose investments are deeply anchored in the national development agenda, this commitment is both a moral obligation and a strategic imperative.
“It reinforces economic resilience from the ground up — starting with the individuals who form the backbone of our operations.
“As a GLIC, we are fully cognisant of our role in shaping a more equitable future, and we will ensure this commitment resonates across our ecosystem by encouraging our investee companies and associates to echo this move,” he noted.
TH said it is committed to ensuring the welfare of its people and supports the living wage initiative.
TH has implemented the living wage initiative and will strive to improve from time to time.
TH will also collaborate with its Group of Companies for greater impact.
As an Islamic financial institution, investing in its people is in line with the higher objectives of Maqasid Shariah, which underpins TH’s Stewardship Framework.
