The average wage in Malaysia reflects the country’s status as an upper-middle-income economy, with salaries varying widely across sectors, regions, and skill levels. 

Urban centres such as Kuala Lumpur and Penang typically report higher wages due to concentration of finance, technology, and manufacturing industries, while rural areas remain lower. 

Wage growth in recent years has been steady, driven by industrial diversification and foreign investment, though it continues to lag behind advanced Asian economies, highlighting Malaysia’s role as a competitive but cost-efficient labour market.

This article looks at the average wage in Malaysia and how it has changed in recent years.

Average monthly salary in Malaysia

The average wage can vary depending on the type of work performed, but the average for the entire economy in the first quarter of 2025 was MYR 2,980 which is about US$705.45.

Average salary Malaysia

Agriculture average salary in Malaysia

Construction average salary Malaysia

Manufacturing average salary in Malaysia

Mining and quarrying average salary in Malaysia

Service sector average salary in Malaysia

Source: Department of Statistics Malaysia

Average wage regional comparison

Malaysia’s average full-time salary is among the higher levels in Southeast Asia. Here’s how it compares to other parts of Southeast Asia.

Singapore

Average monthly wage is the highest in the region. This makes Singapore the clear outlier with far higher wages than its ASEAN neighbours.

Vietnam

Average monthly wage is moderate by regional standards. Manufacturing hubs such as Ho Chi Minh City and Hanoi typically record above-average salaries.

Indonesia

Average wage is lower compared to Malaysia and Vietnam. Regional differences are large, with Jakarta paying more than outer islands.

Thailand

Average wage sits close to Vietnam’s level. Tourism and manufacturing remain key drivers of wage levels.

Philippines

Average wage is the lowest among the main ASEAN economies. Metro Manila pays significantly more than provincial areas, reflecting cost-of-living differences.

Minimum wage in Malaysia

Malaysia’s minimum wage is set at RM1,700 per month (about US\$364) under the Minimum Wages Order 2024, applying nationwide from 1 August 2025 after a phased rollout earlier in the year. 

This rate translates to RM65.38–98.08 per day or RM8.72 per hour depending on workdays per week, and covers most employees including foreign workers and apprentices, though domestic workers are excluded. 

Employers who fail to comply face penalties of up to RM10,000 per employee and further sanctions for continued offences.

Minimum wage in Malaysia regional comparison

Malaysia’s minimum wage is among the highest in Southeast Asia. Here’s how it compares to minimum wages in other parts of Southeast Asian

Singapore

There is no national minimum wage. Instead, Singapore applies targeted wage floors in certain low-income sectors under its progressive wage model.

Vietnam

The minimum wage is among the lowest in the region. Rates vary by region, with major cities like Ho Chi Minh City and Hanoi set at higher levels.

Indonesia

The minimum wage is moderate within ASEAN. Each province sets its own rate, with Jakarta consistently higher than other areas.

Thailand

The minimum wage is similar to Vietnam’s in overall value. Daily rates apply nationwide, with proposals to raise them further under review.

Philippines

The minimum wage is low compared to regional peers. Metro Manila has the highest rates, while rural provinces maintain much lower levels.

Entitlements in Malaysia

Key worker entitlements in Malaysia are governed by the Employment Act 1955. These include:

Working hours and rest

Employees are generally limited to 48 hours per week, not exceeding eight hours per day. A rest day of at least one full day per week is mandatory.

Overtime

Overtime pay is required at one and a half times the hourly rate on normal days, double on rest days, and triple on public holidays.

Annual leave

Employees are entitled to 8–16 days of paid annual leave depending on years of service.

Public holidays

A minimum of 11 paid public holidays per year must be observed, including five compulsory national holidays.

Sick leave

Employees are entitled to 14–22 days of paid sick leave per year, increasing with years of service, plus 60 days of hospitalisation leave if certified.

Maternity and paternity leave

Female employees are entitled to 98 consecutive days of paid maternity leave. Male employees are entitled to 7 consecutive days of paid paternity leave, capped at five births.

Termination and severance

Notice periods vary from 4 to 8 weeks depending on service length. Employees terminated without cause are eligible for severance, calculated by years of service.

Incomes tax in Malaysia

Resident individuals in Malaysia face a progressive income tax structure, with rates ranging from 0 percent to 30 percent, while non-residents are subject to a flat 30 percent rate on Malaysia-sourced income.

FAQ: Average Wages in Malaysia

These are some common questions about the average salary in Malaysia.

What is the current average monthly salary in Malaysia?

The current average monthly salary in Malaysia is about RM 3,000–3,400.

How much do firms typically pay for executive positions?

Firms typically pay executives between RM 8,000 and RM 15,000 per month depending on sector and experience.

What is the minimum wage in Malaysia?

The minimum wage in Malaysia is RM 1,700 per month nationwide.

What additional entitlements do Malaysian workers receive?

Malaysian workers receive entitlements such as annual leave, sick leave, public holidays, maternity and paternity leave, overtime pay, and severance benefits.

What personal income tax applies to average wage earners?

Average wage earners usually fall into the 6–11 percent personal income tax brackets.

Outlook for wages in Malaysia

Malaysia’s wage outlook is positive, with salaries expected to continue rising steadily over the next few years. 

Growth is supported by government reforms, employer competition for talent, and long-term plans to link wages more closely with productivity. 

Analysts expect upward pressure on pay across most sectors, particularly in urban and skilled industries, though gains will vary regionally and by occupation.

That said, Southeast Asian economies can be dynamic and change quickly.

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