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Kindy Fees to Rise Up to 20% After RM2,000 Minimum Wage

The RM2,000 minimum wage from June 2027 is expected to push kindy and daycare fees up by as much as 20%, the operators' association says.

A small kindergarten classroom with children at desks, representing the expected 20% fee increase after the RM2,000 minimum wage takes effect in June 2027
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  1. BreakingToday
    Children at desks in a small kindergarten classroom

    Kindy fees expected to rise up to 20%

    Persatuan Tadika Malaysia says operators are expected to pass on higher labour costs to parents from June 2027.

    01/07
  2. Expected kindy/daycare fee increaseUp to 20%
    02/07

    Up to 20% fee increase

    The association ties the hike to the RM2,000 minimum wage taking effect in June 2027.

  3. 03/07

    The wage that triggers the fee hike

    Minimum wage nowRM1,700
    From June 2027RM2,000

    Operators' staff costs jump when the national floor rises.

  4. 04/07

    Who is affected, who is exempt

    • Parents of kindy children pay more
    • MSMEs under RM50m revenue: exempt
    • Larger firms must comply from June 2027

    The wage floor applies to most employees; some small operators get a break.

  5. 05/07
    e.g. One operator's payroll at RM2,000Monthly statement
    Gross payRM2,000
    EPF 11%-RM220
    SOCSO-RM9.75
    EIS-RM3.90
    PCBRM0
    Take-home (about)RM1,766.35

    e.g. A kindy teacher at RM2,000 gross; employer EPF is on top, not deducted.

  6. 06/07

    When the change lands

    1. Oct 2026Budget 2027 tabled; RM2,000 announced
    2. Jun 2027RM2,000 minimum wage takes effect
    3. From Jun 2027Kindy fees expected to adjust up to 20%

    The wage floor rises first; fees follow.

  7. 07/07
    Bottom line

    ""

    If your child's centre is a small operator under RM50m revenue, it may not face the wage increase. Read the fee schedule before June 2027.

Questions people ask

Will all kindy fees go up 20%?

No. The 20% is the maximum expected increase. Persatuan Tadika Malaysia says operators are expected to pass on higher labour costs; the actual hike depends on each centre's size and staffing.

When does the RM2,000 minimum wage start?

From June 2027, as announced in Budget 2027 tabled on 9 October 2026. MSMEs with annual revenue below RM50 million are exempted from the increase.

Are small kindy operators exempt from the wage rise?

MSMEs with annual revenue below RM50 million are exempt from the minimum wage increase. A kindy centre may qualify if it falls under this threshold.

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