Median wages in Malaysia’s formal sector rise to RM3,167, up 4% in December 2025 — DOSM

Malaysia’s formal labour market continued its gradual strengthening, with median monthly wages rising to RM3,167 in December 2025, marking a 4.0 per cent increase from RM3,045 a year earlier, according to the latest report by the Department of Statistics Malaysia (DOSM).

The findings, released under the Employee Wages Statistics (Formal Sector), Fourth Quarter 2025, show steady wage growth alongside expanding formal employment, reflecting resilience in Malaysia’s labour market despite global economic uncertainties.

Chief Statistician Malaysia, Dato’ Sri Dr. Mohd Uzir Mahidin, said the labour market continued to demonstrate consistent momentum throughout the quarter.

“Malaysia’s labour market continued to strengthen during the fourth quarter of 2025, supported by steady employment growth and sustained increases in wages across all months,” he said.

He noted that the number of formal sector employees rose 3.6 per cent year-on-year to 7.08 million persons in December 2025, reinforcing signs of structural labour market stability.

Steady wage growth across months

The report showed that median wages rose consistently throughout the quarter i.e. 4.3 per cent in October, 4.3 per cent in November, and 4.0 per cent in December 2025.

Despite the overall increase, wage disparities by gender remained evident. Male formal employees, who made up 55.1 per cent of the workforce, recorded a median monthly wage of RM3,167 in December 2025, slightly higher than female employees at RM3,120.

Women accounted for 44.9 per cent of formal sector employment, totalling 3.18 million workers.

Age-based earnings gap widens

Age-wise analysis revealed that employees aged 45 to 49 years consistently earned the highest wages across the quarter, peaking at RM4,245 in December 2025.

At the other end of the spectrum, younger workers saw the fastest wage growth. Employees below 20 years recorded an 11.3 per cent year-on-year increase, with median wages reaching RM1,700.

“The data indicates a clear lifecycle pattern in wages, where earnings peak in mid-career stages while younger workers are beginning to see stronger growth rates,” the report noted.

Sectoral and regional disparities persist

By economic activity, all sectors recorded wage increases, though significant gaps remain.

The Mining and quarrying sector led with the highest median wage at RM7,900 in December 2025, despite employing only 0.5 per cent of the workforce. In contrast, the Agriculture sector recorded the lowest median wage at RM2,564, although it registered a solid 7.6 per cent year-on-year growth.

Geographically, Kuala Lumpur remained the highest-paying region with a median wage of RM4,391, followed by Pulau Pinang (RM3,500) and Selangor (RM3,400).

At the lower end, Kelantan (RM1,800), Perlis (RM1,864), and Sabah (RM2,045) recorded the lowest median wages.

Wage inequality narrows, but gap remains wide

The proportion of formal employees earning below RM1,700 fell sharply to 8.4 per cent in December 2025, down by 12.5 percentage points compared to the previous year.

However, wage distribution analysis continues to highlight inequality. The bottom 10 per cent of earners made RM1,700 or less, while the top 10 per cent earned at least RM11,122 monthly.

“This disparity shows that employees in the 90th percentile earn more than six times those in the lowest group, underscoring the persistent wage gap in the labour market,” Dr. Mohd Uzir said.

Looking ahead: stronger data ecosystem

Dr. Mohd Uzir emphasised that the statistics are derived from administrative data covering formal sector employees, particularly in the private sector.

“These statistics are based on administrative data sources obtained from relevant agencies. Moving forward, DOSM will continue enhancing wage statistics by integrating multiple administrative datasets to provide a more comprehensive view of Malaysia’s labour market,” he said.

The report comes as Malaysia prepares for the upcoming Economic Census 2026, themed “Data Nadi Ekonomi Rakyat”, which will run from 5 January to 31 October 2026. The census aims to capture detailed economic data from both registered and unregistered establishments nationwide.

Malaysia also recently achieved a global milestone by ranking first in the Open Data Inventory (ODIN) 2024/25, jumping from 67th position in 2022/23, a signal of its growing commitment to data transparency and accessibility.