Malaysia’s formal sector recorded median monthly wages increased by 5.5% year-on-year at the end of the third quarter of 2023, according to the Department of Statistics in Malaysia.

Median monthly wages totalled MYR 2,600 (USD 549) in Q3 2023.

The data also found that median monthly wages witnessed a positive growth across all sectors in the third quarter of 2023.

The mining and quarrying sector registered the highest median monthly wages with MYR 5,200 (USD 1,098) in September 2023. This sector also recorded the highest year-on-year growth in September 2023 of 16.5%. The agriculture sector, comprising 1.9% of the total formal employees, registered the lowest median monthly wages of MYR 1,982 (USD 418), showing a 6.3% year-on-year increase in September 2023.

All states indicated positive year-on-year growth in terms of median monthly wages.

In terms of wage distribution in September 2023, 34.6% of Malaysian formal employees earned below MYR 2,000 (USD 422). This marks a decrease from the 38.1% recorded in the previous year. Meanwhile, approximately 7.5% of formal employees earned monthly wages of MYR 10,000 (USD 2,112) and above in September 2023.

While most of Malaysia’s employees work in the formal sector, informal employment represents over 8% of the country’s labour market. Employees are considered to have informal jobs if their employment relationship is, in law or in practice, not subject to national labour legislation, income taxation, social protection or entitlement to certain employment benefits

Formal employees aged 25 to 29 made up nearly one-fifth of the total formal employees in September 2023 accounting for 19.9% or 1.33 million persons while the age group 65 years and above saw the least number of formal employees with 100,000 persons or 1.5%.

The age group of 45 to 49 years old received the highest median monthly wages in September 2023, which is MYR 3,500 (USD 739). This age group also maintained the highest median monthly wages in July 2023 (MYR 3,482 (USD 735)) and August 2023 (MYR 3,500 (USD 739)). However, the age group below 20 years old received the lowest median monthly wages of MYR 1,500 (USD 316) in September 2023, remaining stagnant for three consecutive months throughout the third quarter of 2023.