Average Salary and Wage in Malaysia

Malaysia has a developing economy that has rapidly grown over the last two decades. This makes it an attractive location for workers, employers and expats. Confidence in economic growth across all sectors is steady and looks likely to remain so for the coming year. 

If Malaysia is a destination you are considering for yourself or your business, it’s important to understand its wage structure and average salaries. You also need to be aware of what can influence both, including specific industry sectors and your location within the country. 

Understanding the Concept of Average Salary and Wage

Working out the average salary in a particular industry can help you make an informed decision about working or opening a business in Malaysia. First, it’s important to understand the difference between average and median salaries as there can be variations.

• An average salary is found by adding all the salary values in a particular sector and then dividing the total by the number of values. E.g. ten salary amounts added together and then divided by ten will give you the average salary.
• The median salary is calculated by putting the salaries from lowest to highest and finding the middle value. This often gives a truer picture as the data set for averages can be skewed by extreme high or low values. 

Knowing the difference between gross and net pay is also vital for any employee. Gross pay is the pre-deduction figure that is typically mentioned when a job or position is advertised.

Deductions include income tax. social security contributions and any other mandatory stoppages from employees’ salaries. In Malaysia, income tax is payable at rates from zero for earnings up to 5,000 Malaysian ringgit (RM) to 30% for earnings exceeding RM 2,000,000. 

The remaining amount is your net pay and this is what is paid to you, typically at the end of the month. This figure typically appears on your pay slip in bold to distinguish it from your gross pay and is what will be paid into your bank account. 

Factors That Affect Salaries in Malaysia

There are many factors which have an influence on the salaries in Malaysia.

First, each industry in Malaysia will have a range of salaries corresponding to the various job roles on offer along with their respective responsibilities. Most industries provide higher salaries according to the increased level of responsibility e.g. risk managers or airline pilots. 

Your level of education will also influence the salary that you are able to achieve in Malaysia. Other factors such as experience also play a role.

Location is a key determinant when considering salaries. There are clear distinctions throughout the states and territories in relation to pay. Wages in large cities like Kuala Lumpur and Ipoh are higher than in more provincial areas. 

High-Paying Industries in Malaysia

According to the Department of Statistics Malaysia (DOSM), the highest paying industries in Malaysia in the second quarter of 2024 were:

• Mining and quarrying (median wage RM 5900)
• Construction (median wage RM 2800)
• Services sector (median wage RM 2764)
• Manufacturing (median wage RM 2582)
• Agriculture (median wage RM 2000)

These figures are just the median. You may earn more or less based on your experience, education, job role and skill set. However, if you’re considering a move to Malaysia, it’s useful to know that these industries typically pay the most overall.

Impact of Minimum Wage Policies

The Malaysian government recently increased the minimum wage to RM 1,700 per month for most employers, effective from February 1st 2025. However, some employers can retain the RM 1,500 level, set as part of the Minimum Wages Order 2022. 

Employers with five employees or more must pay the new higher minimum wage while those with five or fewer workers will continue to pay the lower rate. 

Malaysia sets a national minimum wage every two years. This legal minimum applies across all states and territories in the country. 

Current Average Salary Statistics in Malaysia (2025)

The average salary in Malaysia is subject to influence by industry, location and job role. 

Regional average salaries vary across the country with the highest wages unsurprisingly found in the capital, Kuala Lumpur. The median monthly wage here was RM 3982 in June 2024. By contrast, Kelantan recorded a median monthly wage of RM 1645 for the same period. 

Industry differences in average salary provisions are found across the main employment sectors. Mining and quarrying paid the highest salaries by far. 

However, this sector also includes the production of oil and natural gas. Median salary in this sector was RM 5900 in June 2024. The second highest salary in the construction industry was significantly lower at RM 2800 per month. 

Job roles vary widely in relation to the average salary received with highly skilled positions obviously attracting much higher rates than unskilled or manual labour jobs. The highest earners in Malaysia currently earn almost six times as much as the lowest paid workers. 

Comparison of Malaysia’s Average Wages to Global Standards

So, what is the average salary in Malaysia, and can it compete with similar economies? Let’s tally it up against the Philippines and Indonesia. 

The average wage in Malaysia for a full time worker is RM 3,621 or $803 per month whereas in the Philippines the average wage is PHP 44,800 or $765. Indonesia’s average monthly wage of IDR 5,000,000 is equivalent to $350 and is low compared to Malaysia. 

The US dollar equivalent of Malaysia’s minimum wage is $326 whereas the equivalent Philippine minimum wage is $149.  Indonesia’s is about the same. 

Malaysia underwent rapid economic development in the last part of the 20th century and is now embracing the digital age. This has significantly contributed to its dynamic growth.

How to Negotiate a Competitive Salary in Malaysia

In Malaysia, it is expected that salary negotiation is part of the recruitment process. Even when you have been offered a position, you should be raising the subject of your salary before signing a contract. Once your signature is on the paperwork, you will have accepted the salary offered. 

However, it’s important to do your research first and ensure that you know what the going rate for the position, seniority level and location is before you broach the subject. Make sure you understand industry standards and what competitors are paying for a similar role. 

As long as you are clear, polite and professional there is no problem with negotiating your salary. It shows that you know your worth and you’re in touch with current pay levels in the sector.

Conclusion

Now that you understand what the average and median salaries are and you’re clear on gross and net income, you can make some informed choices about your move to Malaysia. 

Make sure to check out QuickBooks as part of your personal and professional financial management toolkit. It makes accounting much simpler and more efficient, leaving you with more time to enjoy your new life abroad.