Compensation & Benefits

Malaysia: Wages on the rise as labour market gains ground

Malaysia: Wages on the rise as labour market gains ground

KUALA LUMPUR – The Department of Statistics Malaysia (DOSM) has delivered a dose of good news: median monthly wages in the formal sector climbed 5.6% to RM2,745 as of September 2024.

The pay rise reflects the economy’s steady pulse, with formal employment expanding 2.1% to 6.82 million workers.

Beneath the surface, however, pay gaps persist. Men still out-earn women, taking home a median RM2,782 compared to RM2,700 for women, though the latter saw a 7.2% jump from the previous year.

Experience continues to be a golden ticket. Workers aged 45 to 49 earned the highest median wage of RM3,627, while young workers under 20 remain stuck at RM1,500, a figure that has not budged since June 2022.

Industry-wise, the Mining & Quarrying sector leads the pay scale at RM5,900, reflecting its high-risk, high-reward nature and a 13.5% wage boost. In contrast, the Agriculture sector lags behind at RM2,027, with only a 2.3% increase – a testament to the sector’s uphill battle against low margins.

Also Read: Labour market growth in Malaysia signals economic stability 

Geographically, Kuala Lumpur remains the land of opportunity, boasting the highest median wages (RM3,964), trailed by Selangor (RM3,000) and Penang (RM2,800). Meanwhile, wages in Kelantan, Perlis, and Sabah hover between RM1,682 and RM1,882, reinforcing the urban-rural divide.

Despite these gains, 32% of formal workers still earn below RM2,000, though this proportion dipped by 2.6 percentage points from last year.

The wage gap remains a chasm, with the top 10% of earners pulling in nearly six times more than the lowest 10% (RM8,600+ vs. RM1,500 or less).

Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin stressed that DOSM will sharpen wage data collection, providing a clearer lens on Malaysia’s labour landscape.

Also Read: Malaysia expands wage increase programme to benefit thousands of workers

A closer look at Malaysia’s wage trends

The latest wage data paints a mixed picture: while salaries are inching upwards, pay disparities linger.

The 5.6% rise in median wages signals that Malaysia’s economic engine is humming along, creating a stronger job market.

But not all workers are riding the same wave. Men still earn slightly more than women, but women’s wages have been climbing at a faster pace.

The generation gap in earnings is striking. Those aged 45 to 49 enjoy peak salaries, while workers under 20 remain at the bottom, frozen at the same rate. Climbing the wage ladder, it seems, takes time and tenure.

By sector, the Mining & Quarrying industry remains the best-paying field, where wages shot up. This reflects the high risks and technical expertise required. Meanwhile, Agriculture workers face a stubbornly low median salary, as the sector grapples with slow wage growth.

Location is also a key determinant of one’s pay packet. Kuala Lumpur leads the pack, while Selangor and Penang follow. However, workers in Kelantan, Perlis, and Sabah see significantly lower earnings, underscoring regional wage disparities.

A silver lining is that fewer workers now earn below RM2,000. However, the income gap remains vast.

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