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Malaysia’s formal sector wages rise 4.3% to RM2,864 in June 2025

Malaysia’s formal sector wages rise 4.3% to RM2,864 in June 2025

By state, Kuala Lumpur recorded the highest median wage at RM4,064, followed by Selangor at RM3,145 and Pulau Pinang at RM2,927.

Malaysia’s formal-sector employees saw stronger pay growth in June 2025, reflecting a stable and expanding labour market. Data from the Department of Statistics Malaysia (DOSM) showed that median monthly wages rose by 4.3% year-on-year to RM2,864, while the number of formal employees increased by 3.5% to 6.97mn.

Men earned RM100 more than women on average

In June 2025, men made up 55.1% of Malaysia’s formal employees (3.84mn persons) and earned a median monthly wage of RM2,900. Women accounted for 44.9% (3.13mn persons) and earned a median wage of RM2,800.

Younger workers saw the highest wage growth

All age groups experienced wage increases compared with the previous year. Employees below 20 years old saw the largest jump, with their median monthly wage rising 13.3% to RM1,700. Meanwhile, employees aged 45 to 49 years earned the highest median wage at RM3,800 in June 2025.

All sectors recorded wage growth

Every economic sector reported increases in median monthly wages in the second quarter of 2025.

The mining and quarrying sector, which represents only 0.6% of all formal employees, recorded the highest growth at 10.2%, reaching RM6,500 in June 2025.

In comparison, the agriculture sector, which accounts for 1.9% of formal employees, reported the lowest median wage at RM2,200. Despite this, wages in the sector still rose by 10.0% year-on-year.

Kuala Lumpur workers earned the most

Median wages increased across all states during this period. Three states exceeded the national median wage of RM2,864.

Kuala Lumpur recorded the highest median wage at RM4,064, followed by Selangor at RM3,145 and Pulau Pinang at RM2,927.

On the other hand, the lowest median wages were seen in Kelantan at RM1,764, Perlis at RM1,800, as well as Sabah and Kedah at RM2,000.

Fewer employees earning below RM1,700

As of June 2025, about 10.4% of Malaysia’s formal employees earned below RM1,700 per month. This marks a drop of 12.2 percentage points compared with June 2024.

The bottom 10% of employees earned RM1,664 or less, while those in the 90th percentile earned RM9,200 or more. This shows that the top 10% of earners made about five times more than the lowest 10%.

DOSM to continue improving labour data

Dr Mohd Uzir said these findings are based on administrative data from relevant agencies focusing on citizens working in the formal sector, mainly within the private sector.

He added: “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."


ALSO READ: New Wanita MyWira Accelerator aims to equip more than 100,000 women in Malaysia with future-ready skills and opportunities


Infographic / DOSM

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