The Department of Statistics Malaysia (DOSM) reports that after Malaysia adopted the RM1,500 minimum wage in May of last year, median monthly incomes and wages increased 7.7 percent to RM2,424 in 2022 from RM2,250 in 2021.
Chief statistician Datuk Seri Dr. Mohd Uzir Mahidin attributed the rise to ongoing economic and social activities, which were backed by rising tourist arrivals and improvements in the labor market, particularly in the services sector.
“The Malaysian government had increased the minimum wage to RM1,500 starting from May 2022, mandating a monthly wage of RM1,500 for employees in all sectors, as a measure that is expected to improve overall salaries and wages conditions in the country as compared to the previous years.
“Thus, this situation is reflected by the increase in the median monthly salaries and wages received by Malaysian citizens in 2022 which rose by 7.7 percent to RM2,424 (2021: RM2,250),” Mohd Uzir said.
He said that in 2022, around 50 percent of full-time citizen workers are paid less than RM2,424 per month.
Similarly, the average monthly salary and wage for Malaysians increased by 5.8 percent in 2022 to RM3,212 from RM3,037 in 2021.
Average monthly incomes for all industries and skilled workers rise
In 2022, mean monthly incomes and wages increased across all economic sectors.
According to DOSM, the largest sector in the economy, the services sector, had the most salary and wage beneficiaries, particularly in the sub-sector of wholesale and retail trade activities, education, food and beverages (F&B), and accommodation.
This was followed by the manufacturing sector. While the manufacturing sector had a 7.9 percent increase in mean monthly earnings and compensation, the services sector saw a 5 percent gain.
The average monthly earnings and compensation for skilled workers also rose by 3.7 percent, or RM177 more, to RM5,025 from RM4,848 in 2021.
“Among skilled employees, managers took home the highest mean monthly salaries and wages at RM6,385, increased by 1.4 percent as against RM6,296 in 2021 and followed by professionals (RM5,900) and technicians and associate professionals (RM3,668).
“The mean monthly salaries and wages of semi-skilled employees rose to RM2,241 (2021: RM2,064), particularly contributed by clerical support workers (RM2,555), followed by plant and machine operators and assemblers (RM2,158), craft and related trades workers (RM2,154) and services and sales workers (RM2,139),” said Mohd Uzir.
Additionally, the low-skilled group, which comprises elementary employees, saw an increase of RM66 to RM1,815 from RM1,749 in the previous year.
Average monthly incomes in both urban and rural areas are rising
In the meantime, the average monthly incomes and wages for both urban and rural areas increased in comparison to 2021, reaching RM3,351 for urban areas and RM2,393 for rural areas.
“Specifically, the mean monthly salaries and wages in urban areas posted a growth of 5.1 percent (2021: RM3,188, +3.2 percent), while rural areas exhibited a relatively more substantial growth of 10.5 percent (2021: RM2,166, +3.9 percent),” he added.
Putrajaya has the highest mean monthly incomes and wages, at RM4,666. The national mean was RM3,212, while four other states—Kuala Lumpur (RM4,207), Selangor (RM3,737), Labuan (RM3,418), and Pulau Pinang (RM3,313)—exceeded it.