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 the 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 2,864, which is about US$734.45.
Average salary in Malaysia
| Q4 2024 | Q1 2025 | Q2 2025 | Q3 2025 | |||||
| MYR | US$ | MYR | US$ | MYR | US$ | MYR | US$ | |
| Total | 3,051 | 782.49 | 2,864 | 734.45 | 2858 | 732.91 | 2864 | 734.45 |
| Agriculture | 3,333 | 854.81 | 2,827 | 724.96 | 2200 | 564.18 | 2215 | 568.02 |
| Mining and quarrying | 2,915 | 747.53 | 3,000 | 769.33 | 6526 | 1,673.55 | 6533 | 1,675.34 |
| Manufacturing | 3,330 | 854.04 | 4,427 | 1,135.27 | 2670 | 684.70 | 2670 | 684.70 |
| Construction | 2,600 | 666.75 | 2,545 | 652.65 | 2942 | 754.46 | 2976 | 763.17 |
| Services | 2,021 | 518.36 | 2,045 | 524.43 | 2894 | 742.15 | 2894 | 742.15 |
Source: Department of Statistics Malaysia
Regional comparison
Malaysia’s average full-time salary is among the highest in Southeast Asia. Here’s how it compares to other parts of Southeast Asia.
Singapore
The average monthly wage is the highest in the region. This makes Singapore the clear outlier with far higher wages than its ASEAN neighbours.
Vietnam
The average monthly wage is moderate by regional standards. Manufacturing hubs such as Ho Chi Minh City and Hanoi typically record above-average salaries.
See also: Average Salary in Vietnam
Indonesia
The average wage is lower compared to Malaysia and Vietnam. Regional differences are large, with Jakarta paying more than outer islands.
See also: Average Salary in Indonesia
Thailand
The average wage is close to Vietnam’s level. Tourism and manufacturing remain key drivers of wage levels.
See also: Average Salary in Thailand
Philippines
The 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.
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.
See also: Minimum Wage in Vietnam
Indonesia
The minimum wage is moderate within ASEAN. Each province sets its own rate, with Jakarta consistently higher than other areas.
See also: Minimum Wage in Indonesia
Thailand
The minimum wage is similar to Vietnam’s in overall value. Daily rates apply nationwide, with proposals to raise them further under review.
See also: Minimum Wage in Thailand
Philippines
The minimum wage is low compared to regional peers. Metro Manila has the highest rates, while rural provinces maintain much lower levels.
See also: Minimum Wage in the Philippines
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.
| Income MYR | US$ | Tax rate |
| 0 – 5,000 | 0 – 1,163 | 0% |
| 5,001 – 20,000 | 1,164 – 4,651 | 1% |
| 20,001 – 35,000 | 4,652 – 8,140 | 3% |
| 35,001 – 50,000 | 8,141 – 11,628 | 6% |
| 50,001 – 70,000 | 11,629 – 16,279 | 11% |
| 70,001 – 100,000 | 16,280 – 23,256 | 19% |
| 100,001 – 400,000 | 23,257 – 93,023 | 25% |
| 400,001 – 600,000 | 93,024 – 139,535 | 26% |
| 600,001 – 2,000,000 | 139,536 – 465,116 | 28% |
| Above 2,000,000 | Above 465,116 | 30% |
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.
With this in mind, the best way to keep up to date with the changing business environment is to make sure to subscribe to the-shiv.
First published September 6, 2024. Last updated February 16, 2026.