Childcare fees set for 15-30% increase after minimum wage hike, says group


PETALING JAYA: Childcare centres nationwide are expected to raise their fees by 15% to 30% following the increase in minimum wage to RM1,700 effective Feb 1, 2025.

Malaysian Childcare Centre association chairman Simon Ng said the government's decision to raise the minimum wage will undoubtedly impact and improve the quality of life for workers, thereby encouraging the country's economic development.

“Our association fully supports this policy, but at the same time, we are aware of the operational challenges it poses to the childcare industry.

ALSO READ: Minimum wage hike a balancing act

“As part of the service industry, it is crucial for caregivers and staff at childcare centres to receive fair wage returns. However, when wage levels increase, the operating costs of the childcare industry will inevitably rise significantly,” he said in a statement on Wednesday (Oct 23).

Ng said that this adjustment is necessary to help childcare centre operators cope with the pressure of rising costs and ensure that children continue to enjoy high-quality service and a safe environment.

ALSO READ: Budget 2025: New minimum wage of RM1,700 to benefit workers, employers, says HR Minister

“To maintain the quality of services while ensuring the welfare of caregivers and staff at childcare centres, operators will correspondingly increase fees, with increases ranging from 15% to 30%.

"Our association is planning a constructive communication strategy with the government and hope to get positive feedback from the Women, Family and Community Development Minister and Social Welfare Department director-general on finding a solution in implementing this policy," he added.

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