Average Salary in Malaysia 2023
How much money does a Malaysian earn?
A Malaysian worker would earn MYR 6,590 on average per month. This figure is the median national wage in Malaysia for 2016, which considers the entire population of employees in Malaysia regardless of their working status.
An individual’s gross salary in a month is calculated by taking all income earned during a calendar year and dividing it by 12 to get an annual pay bracket.
Thus, if one works hard every day, they would have roughly MYR 46,500 to maintain one’s living standard in Indonesia yearly. Their base salary starts at 5,000 MYR when they are fresh out of university studies.
After six months, there are some opportunities to move up at work or switch jobs, but either way, you will have a base salary of MYR 5,000.
Malaysians earn the best in their early years of working life. There is also no retirement age in Malaysia however, one is expected to be productive at work until the day they die.
After all, there is always an application for an upgrade or advancement at this point in time unless you are lazy and not serious about your job search.
Many Malaysians earn higher salaries than this average wage depending on certain factors like qualifications, experience level, skill set, and industry that you choose to work in (be it private or public sector).
Salary Distribution in Malaysia
Salary Scale
Malaysian salaries start at 1,670 MYR per month. You should have at least four years of work experience before expecting to receive this amount.
Salaries increase as your working experience increases. The time it takes for the salary to increase depends on the company and how well you do in your job. It ranges from 3 months to 1 year or more, depending on the company’s promotions and upward mobility policy.
Salary Median
The median monthly wage is 6,450 MYR, which implies that half of the population earns less than 6,450 MYR, and the other half earns more than 6,450 MYR. The average Malaysian salary is 7,732 MYR per month, which means that most Malaysians are employed in the private sector.
The government does not provide a minimum wage to workers and leaves it up to management and labor unions to negotiate the pay package for their workforce.
Percentiles
25% of the workforce earns less than 3,650 MYR, while 75% earn more. 50% of the workforce earns less than 6,000 MYR per month, while 50% earn more.
This means that 25% of the workforce earns less than 3,650 MYR (or $3,500 USD), and 75% earns more.
In other words, if you randomly picked a person from Malaysia’s workforce, there is a 50/50 chance that their monthly income will be over or under 6,000 MYR. Also, remember that 1 USD = 4.3MYR as of 2015.
How much does the median pay differ from the average salary?
The average salary is often used to measure people’s financial performance. However, there is more to the story than just the average. The median pay tells a different tale that may be more representative of what people are actually earning.
In terms of compensation, both salaries have their pros and cons. Median pay is more fluid than average salary, which makes it a better indicator of changes in pay over time. This is especially useful for young people, who are just starting out their careers, as it can be used to determine whether there has been any significant movement in the salaries of individuals at their level.
However, averages are likelier to even out discrepancies between high and low earners. They also tend to be less volatile on a year-over-year basis.
Suppose you have two employees earning $5 million per year versus $30,000 annually. In that case, the former will exert undue influence on the average salary of your company if they were included in your annual payroll calculations.
Removing them would yield a much fairer representation of how most staff are doing.
If you want to learn more about what your peers earn, median pay is the right metric to investigate. If you want a clear illustration of how much money people like you are raking in, an average salary would be better suited for such a task.
The significant difference between the two comes down to which one gives you a better benchmark for how your own pay stacks up against others at your level. The answer depends on comparing salaries within one organization or across industries and professions.
Comparing Salaries Based on Years of Industry Experience
How does an individual’s income increase over time?
Many factors contribute to an individual’s income over time. Some of these factors include the years an individual has worked in a specific field, their level of education, and their skillset.
Generally speaking, someone who has been working in a particular industry for a more extended period of time will tend to make more money than someone new to the industry.
Additionally, someone with a higher level of education will typically make more money than someone with less education. And finally, someone with more skills and experience will usually earn a higher salary than someone with fewer skills.
In Malaysia, a comparison of salaries based on years of industry experience shows that a person working in the computer software and hardware industry for 20 years makes 56,000 MYR per year.
If this individual went to university and pursued a bachelor’s degree, their salary would increase about 4% to 58,000 MYR per year.
On the other hand, if this person attained a master’s degree instead of pursuing their undergraduate education, their salary would jump 21% up to 66,000 MYR per year.
Salary Comparisons According to Degree
How does the degree of education in Malaysia affect your salary?
There are many factors that affect the salary of people in Malaysia. One factor is the degree they have obtained.
For instance, a person with a Master’s Degree will probably earn more than someone with only an undergraduate degree.
The number of years spent studying also plays into it; someone who took five years to graduate may earn less than somebody who graduated after four years because they would have studied for one year longer and be more qualified for their position.
The field you work in can also play into your salary; if you work in the engineering industry, you might make considerably more money per month or year than someone in the tourism industry.
The point is, that the amount of money you make depends on many things, and your degree plays a role.
Comparing Gender-Specific Salary in Malaysia
Male workers earn 11% more than female employees in Malaysia on average across all industries.
However, there are some industries where this gap is much more comprehensive. For example, male employees in the energy and utility industry earn 43% more than their female counterparts, while male employees in the telecommunications industry earn 21% more.
On the other hand, there are a few industries where women earn more than men. The health and social work industry is one example where women earn 5% more than men.
This may be because women typically hold many jobs in this industry. There is a more significant difference in salary levels between men and women in the public sector.
Malaysian Average Yearly Income Increase Percentage
How much do Malaysians earn in yearly pay increases? How often do workers get compensation increases?
Malaysian workers are getting yearly pay increases of an average percentage, which is higher than the global average.
Malaysians enjoy a yearly increase in their salary by about 3%, which leads to them having a better life and being able to live comfortably, as opposed to people who do not get any compensation or wage increases.
This is because Malaysians’ wages tend to be lower than those in other countries and therefore need more money for basic needs such as food and clothing.
Malaysia has been experiencing high economic growth over the past few years due to its booming economy, so this might be why they have been giving out these pay increases every year since 2010, when it first started happening.
This percentage is higher than the global average of 2.3%, and it has been growing over the years as well; this means that workers in Malaysia are generally getting pay raises more often than people all around the world.
Annual Growth Rates by Industry in 2022
- Energy – 8%
- Healthcare – 7%
- Construction – 6%
- Agriculture – 3%
- Retail/Wholesale – 5%
- Financial Services – 4%
- Transportation and Logistics – 8%
Businesses operating in vital sectors often grant more significant and more regular increases. While exceptions occur, the economic status of each corporation is inextricably linked to the economic state of the nation or area.
These data are subject to change regularly.
Average Salary Increase Rates by Level of Experience in Malaysia
In Malaysia, the annual growth rates by industry will change depending on the employee’s level of experience. For those with little to no experience, the growth rate for most industries will be about 5%.
However, for those with more than ten years of experience in their respective field, the growth rate for most industries will be about 2%.
- Junior-level employees in Malaysia will typically see an average salary increase rate of about 5% per year.
- Entry-level employees in Malaysia will typically see an average salary increase rate of about 4% per year.
- Mid-level employees in Malaysia will typically see an average salary increase rate of about 3%.
- Senior-level employees in Malaysia will typically see an average salary increase rate of about 2%.
- Management-level employees in Malaysia will typically see an average salary increase rate of about 1%.
Malaysian Bonus & Incentive Rates
How much and how often are bonuses given to Malaysian workers?
Malaysian workers may be eligible for bonuses and incentives. There are two types of bonuses: monetary and non-monetary. Monetary bonuses can come in the form of cash or goods, while non-monetary bonuses include things such as time off from work or a day’s worth of work at half pay.
The frequency with which these rewards are given varies by company and worker status, but most often, they will happen annually.
The Malaysian government has set out strict guidelines for how much each type of bonus should be valued so that employees know what to expect when they receive their reward.
To qualify for a monetary bonus, employers must give employees one month’s salary per year worked with them; this is not set by law but is the industry standard. This bonus is typically paid twice a year, at the end of August and December after an employee’s anniversary date with the company.
Those who receive non-monetary bonuses such as time off or reduced workloads depend on their employment status and the type of job they hold.
For temporary workers, this is typically 15 days off – for example – per year worked; permanent employees may be entitled to 25 days’ worth of annual leave, given in increments throughout the year rather than all at once.
Different Types of Bonuses
Bonuses for Individual Performance
Bonuses for individual performance are typically given to employees who have exceeded expectations or accomplished a specific task. They are a way to reward employees for their hard work and dedication.
The bonus amount may vary, depending on the company and the employee’s position.
Some common types of bonuses for individual performance include:
- A cash bonus, which is a lump sum of money paid to the employee
- A stock bonus, which is a grant of shares in the company’s stock
- A bonus vacation is an extra vacation day or week that is given to the employee
- A bonus trip is a trip that is paid for or subsidized by the company.
Bonuses based on Company Performance
Bonuses for company performance are given to the entire company or a segment of employees based on how well the company did financially in a specific time period.
For example, an entire department may receive bonuses if the company’s profits increased by 10% that quarter.
Bonuses for companies can be found in any industry, but they are most common in financial services and real estate because companies depend on positive earnings reports to continue operating.
Bonuses Based on Achieved Goals
Bonuses for achieved goals are given to employees who have met their predetermined targets. The most common types of bonuses for achieved goals include:
- A commission is a payment based on the number of sales generated by an employee
- An attendance bonus is given to employees with perfect attendance records
- A productivity bonus is paid to employees whose work output exceeds expectations.
Holiday / Year-End Bonuses
Many companies implement holiday bonuses at the end of the year to thank employees for their hard work.
These are typically given as a cash bonus equivalent to 1–2 weeks’ salary, but this can vary depending on the company policy and the type of position held at the company.
Holiday and year-end bonuses are given every year, so they are not considered performance-based bonuses.
Comparing Bonus Rates by Career Field
What qualifies a job deserving substantial incentives and a high salary in Malaysia?
In Malaysia, there is a general consensus that specific jobs are more deserving of substantial incentives and a high salary than others.
This belief is based on the idea that these professions require more excellent skill, effort, and dedication, and thus deserve to be rewarded accordingly.
While there may be some disagreement over which jobs fit this description, most Malaysians would likely agree that specific careers do indeed warrant more significant financial compensation.
This would include doctors, lawyers, and certain key government positions.
Bonus Comparison by Seniority Level in Malaysia
Senior workers in Malaysia are entitled to additional benefits besides the basic salary, including allowances. An employee is considered a senior worker when he/she reaches the age of 50 (female) or 55 (male).
Senior workers are entitled to an additional 2.5% of their basic salary for every five years of seniority. Such benefits are not meant to be higher than MYR 2,500 (USD 672.53) in any month.
Salary Information For Popular Jobs in Malaysia
Administration / Reception / Secretarial
- Administrative Assistant – 3,640 MYR
- Office Manager – 5,970 MYR
- Receptionist – 3,260 MYR
Supply Chain Management
- Sr. Logistics Analyst – 9,490 MYR
- Logistic Coordinator – 5,980 MYR
- Logistic Executive – 3,890 MYR
Legal
- Lawyer – 9,300 MYR
- Legal Executive – 5,420 MYR
- Paralegal – 3,310 MYR
- Corporate Lawyer (Non-Legal) – 4,510 MYR
Marketing / Sales Management
- Marketing Manager – 8.070 MYR
- Digital Marketing Specialist – 3.340 MYR
- Sales Executive / Consultant – 7.080 MYR
Business Analyst / Project Management / Information Technology
- Information Security Officer – 10,220 MYR
- Technical Writer – 5,530 MYR
- SAP Functional consultant – 13,170 MYR
- Programmer Analyst – 5,250 MYR
- Business Analyst (IT) – 6,050 MYR
- Developer / Developer Programmer – 3,830 MYR
- Web Designer – 2,450 MYR
Engineering and Architecture
- Mechanical Engineer – 7,590 MYR
- Electrical Engineer – 10,990 MYR
- Mechanical Engineering Technician – 4,560 MYR
- Civil Engineer – 5,780 MYR
- Architectural Stylist – 7,700 MYR
Education / Training Management / Human Resource Management
- Senior Education Officer – 9,310 MYR
- Training Specialist – 4,550 MYR
- Human Resource Manager – 8,490 MYR
Malaysia’s Average Hourly Wage
Malaysia’s average hourly salary (pay per hour) is 38 MYR. This indicates that the typical Malaysian earns around 38 MYR per hour worked. The minimum wage is 800 MYR per month or around 20 MYR per hour.
Salary Comparisons Between the Public and Private Sectors in Malaysia
In Malaysia, public sector workers earn an average of 9% more than their private-sector colleagues across all sectors.
This is because the public sector offers better benefits and job security than the private sector. In addition, the government tends to invest more in the public sector, which helps to create better working conditions and higher salaries.
While the private sector may offer some advantages, such as job flexibility and the ability to work from home, the public sector still comes out on top in terms of overall benefits.