KUALA LUMPUR (Jan 27): The median monthly wages in Malaysia's formal sector increased by 5.6% year-on-year to RM2,745 in September 2024, as reported by the Department of Statistics Malaysia (DOSM).

Employees aged 45-49 earned the highest median monthly wages at RM3,627, maintaining this level for 22 consecutive months since December 2022, the DOSM said in a statement. 

The top 10% of employees earned RM8,600 or more per month, nearly six times the earnings of the bottom 10%, who earned RM1,500 or less.

Thirty-two per cent of employees earned below RM2,000 in September 2024, a 2.6 percentage point improvement from the previous year.

Kuala Lumpur registered the highest median wages at RM3,964, followed by Selangor at RM3,000 and Pulau Pinang at RM2,800, while the lowest figures were recorded in Kelantan at RM1,682, Perlis at RM1,682, and Sabah at RM1,882, the statement read.

The mining and quarrying sector offered the highest median monthly wages of RM5,900, reflecting a 13.5% increase, while agriculture registered the lowest at RM2,027, with a 2.3% year-on-year growth.

Male employees, comprising 55.2% of the workforce, earned median monthly wages of RM2,782, while females earned RM2,700 during the same period.

The number of formal employees increased by 2.1% year-on-year, reaching 6.82 million in September 2024, signifying a steady improvement in the labour market.

"These statistics were based on administrative data sources obtained from relevant agencies, which focused on the citizens employed in the formal sector, notably in the private sector," said chief statistician Datuk Seri Dr Mohd Uzir Mahidin.

"Looking ahead, the DOSM will continue to enhance the dissemination of employee wages statistics by integrating various administrative data to produce more comprehensive statistics for an extensive understanding of Malaysia's labour market," Mohd Uzir said.

The Malaysian government has introduced policies to enhance wage structures, including the Progressive Wage Policy (PWP), piloted between June and September 2024. The PWP established multiple wage tiers above the minimum wage, incentivising employers to provide better compensation, particularly for micro, small, and medium enterprises (MSMEs).

Introduced as a pilot in mid-2024, the PWP aims to promote wage growth, productivity, and skills development by implementing structured wage incentives exceeding minimum wage requirements.

In December 2024, Malaysia also rolled out a new public service compensation scheme, leading to substantial pay increases and salary adjustments for the country's 1.6 million civil servants. This initiative addresses rising living costs, and aims to attract and retain talent within the public sector.