Wage growth in Malaysia accelerates amidst economic expansion

The median monthly wages in Malaysia’s formal sector rose by 9.4% in March 2024, aligning with the country’s economic growth in the first quarter, according to the Department of Statistics Malaysia (DOSM).

The median wage reached RM2,844 (US$612) in March, up from 8.5% in February and 5.2% in January. DOSM attributed this increase to a better labour market landscape and continued economic expansion. The formal sector workforce also grew by 1.5% year-on-year, adding 97,300 employees in March.

Gender wage disparities were noted, with male employees earning a median wage of RM2,900 (US$624) compared to RM2,800 (US$602) for female employees. Men comprised 55.3% of the formal workforce, while women made up 44.7%.

Employees aged 45 to 49 earned the highest median wage at RM3,818 (US$822) in March, maintaining the top spot from previous months. All age groups, except those under 20, saw wage increases over the past year. Employees aged 65 and above experienced the highest year-on-year growth, while those below 20 earned the lowest median wage of RM1,500 (US$323) since June 2022.

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All sectors recorded wage increases in Q1’2024. The mining and quarrying sector, though only 0.6% of the workforce, had the highest yearly growth at 12%, reaching RM8,400 (US$1,808) in March. The agricultural sector reported the lowest median wage at RM2,000 (US$430), a 5.3% increase.

Kuala Lumpur and Selangor exceeded the national median wage, with the former at RM4,256 (US$916.32) and the latter at RM3,164 (US$681). Kelantan, Perlis, and Sabah had the lowest median wages, ranging from RM1,645 (US$354) to RM1,882 (US$405).

In March, 31.2% of formal employees earned below RM2,000, a decrease from 34.8% in March 2023. The wage ratio showed the top 10% of earners making seven times more than the lowest 10%, reported New Straits Times.