Feeling Underpaid? You’re Not Alone… Only 10% of Malaysians Earn Above RM9,200 Monthly

Only a small portion of Malaysians are earning high monthly wages, according to the latest findings by the Department of Statistics Malaysia (DOSM).

Photo via The Edge Malaysia

In its Employee Wages Statistics (Formal Sector) Report for the second quarter of 2025, DOSM revealed that just 10% of Malaysians take home more than RM9,200 a month, while those in the bottom 10% earn RM1,664 or less. This means the top earners make over five times more than the lowest-paid workers, highlighting the country’s persistent income gap.

Despite this, the report showed some encouraging progress. The median monthly wage for formal sector employees increased by 4.3% year-on-year, reaching RM2,864 in June 2025. Formal employment also grew to 6.97 million people, indicating a stronger labour market overall.

There was also a decline in the number of formal workers earning below RM1,700, which dropped from 12.2% to 10.4% during the same period — a sign that lower-income workers are slowly moving up the wage scale.

When comparing states, Kuala Lumpur continued to lead with the highest median wage at RM4,064, followed by Selangor (RM3,145) and Penang (RM2,927). On the other hand, Kelantan recorded the lowest median wage at RM1,764, followed by Perlis (RM1,800), and both Sabah and Kedah trailing close behind.

Overall, while wages in Malaysia’s formal sector are showing steady growth, the gap between the highest and lowest earners remains a challenge that continues to shape the nation’s economic landscape.