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Budget 2027 proposes RM2,500 starting salary for graduates

Nearly half of new degree graduates already earn RM2,500 or less, KPT data show. The speech set no start date and no rules.

NewsPublished 20 October 20263 min read

The Budget 2027 speech on 9 October 2026 proposed a minimum starting salary of RM2,500 a month for graduates and semi-skilled workers. The Higher Education Ministry's survey of 2025 graduates shows 46.8% of new degree holders earned RM2,500 or less.

46.8%Degree graduates on RM2,500 or lessConvocation 2025
82.1%Diploma graduates on RM2,500 or lessConvocation 2025
RM2,500Proposed starting salaryBudget 2027, no start date
Sources: KPT, Graduate Tracer Study Report 2025; Budget 2027 speech, 9 October 2026.
In short
  • 46.8% of 2025 degree graduates and 82.1% of diploma graduates earned RM2,500 or less.
  • The share ranges from 79.1% in education to 26.1% in ICT.
  • The speech set no start date and no rules yet.

What was announced

  • Starting salary: RM2,500 a month, for graduates and semi-skilled workers.
  • General minimum wage: RM1,700 now, rising RM300 to RM2,000 from June 2027, with smaller firms below RM50 million in sales exempt.

Status

The RM2,500 figure is a proposal. The speech gave no start date, no list of who is covered and no rules for employers. It becomes binding only once a law or order is published.

How it compares with what graduates earn now

Graduates in work, 2025RM2,500 or lessLargest pay band
Degree46.8%RM3,001 to RM4,000
Diploma82.1%RM1,501 to RM2,000
Pay starts lowest in education and the arts
Education79.1%Arts and humanities72.9%Agriculture69%Services57.4%Natural sciences, maths57.2%Social sciences51.5%Business, administration and law42.9%Health and welfare41.6%Engineering35.3%ICT26.1%
Share of 2025 degree graduates in work earning RM2,500 a month or less, by field of study. Foundific sum of KPT income bands. Source: KPT, Graduate Tracer Study Report 2025, Jadual 4o.
  • Public service: the 66 degree-entry grade 9 schemes start between RM2,250 and RM3,130 in basic pay. With fixed allowances in Kuala Lumpur, all pay more than RM2,500.
  • DOSM: graduates aged 24 and under had a median of RM2,031 a month in 2024.
  • Progressive Wage Policy white paper: graduate entry-level posts had a median of RM2,066 in 2019 and RM1,624 in 2022.

What is not yet known

  • Basic or total pay: whether allowances count towards RM2,500.
  • Who is covered: which qualifications, jobs and employers, and whether small firms are exempt as for the minimum wage.
  • Start date.

The survey's bands end at RM2,500, so the shares above include graduates paid exactly RM2,500.

Next steps

DOSM's Graduates Statistics 2025 are due on 5 November 2026. The fresh graduate salary page has the full KPT bands by field, and the graduate unemployment page has DOSM's figures by age.

MalaysiaFresh graduate salary in MalaysiaStarting pay bands by field and institution MalaysiaGraduate unemployment in MalaysiaDOSM figures by age, degree and diploma MalaysiaGovernment starting pay in MalaysiaGrade 9 starting pay by scheme

Sources

Budget 2027 speech, KPT Graduate Tracer Study 2025, DOSM Graduates Statistics 2024, Progressive Wage Policy white paper
  1. Ministry of Finance, Budget 2027 speech 9 October 2026, paragraph 32.
  2. KPT, Laporan Kajian Pengesanan Graduan 2025 Income bands by level (Jadual 4m) and by field (Jadual 4o).
  3. DOSM, Graduates Statistics 2024 Released 31 October 2025.
  4. Ministry of Economy, Kertas Putih Cadangan Dasar Gaji Progresif 30 November 2023, section 2.8.