The median monthly wage for formal sector employees in Malaysia has increased by 4.3 per cent year-on-year, reaching RM2,864 in September 2025, up from RM2,745 in September 2024. The Department of Statistics, Malaysia (DOSM) reported this figure based on a survey of 7.06 million formal sector employees.
A gender-based analysis reveals a slight wage gap, with male formal employees (55.1 per cent of the total workforce) recording a median monthly wage of RM2,900, while female formal employees (44.9 per cent) received RM2,800.In terms of age, the 45 to 49 age bracket continues to receive the highest median monthly wages, maintaining a steady RM3,800 throughout the third quarter of 2025. Notably, the youngest group—employees aged below 20 years—recorded the highest growth, with their median monthly wage reaching RM1,700, representing a significant 13.3 per cent increase compared to the previous year. All age groups experienced a consistent year-on-year rise in median monthly wages.
All economic sectors recorded increases during the third quarter of 2025. The Mining & Quarrying sector, despite making up only 0.6 per cent of formal employment, remained the top-earning sector with the highest median monthly wage at RM6,600, marking an 11.9 per cent year-on-year growth. Conversely, the Agriculture sector, which accounts for 1.8 per cent of formal employees, recorded the lowest median monthly wage at RM2,245.
Geographically, Wilayah Persekutuan Kuala Lumpur continued to lead with the highest median monthly wage at RM4,064, followed by Selangor at RM3,127 and Pulau Pinang at RM2,927. The lowest wages were recorded in Kelantan and Perlis at RM1,800, with Sabah and Kedah close behind at RM2,000.Persistent Wage Disparity
The report also highlighted the prevailing income inequality through percentile analysis. While the bottom 10 per cent of Malaysian formal employees earned monthly wages of RM1,700 or less, employees in the 90th percentile earned at least RM9,000 per month. This means the highest earners (90th percentile) earned five times more than those in the lowest wage group, underscoring a significant wage gap. Encouragingly, the percentage of formal employees earning below RM1,700 has been reduced to 8.8 per cent in September 2025, a 13.5 percentage point drop from September 2024.
