Malaysia’s median monthly wage for formal employees reached RM3,167 in December 2025, a 4.0% increase from RM3,045 a year earlier, according to the latest data from the Department of Statistics Malaysia (DOSM). The formal workforce also grew 3.6% year-on-year to 7.08 million workers in the same month.

The national median wage, the midpoint where half of formal workers earn more and half earn less, rose through the fourth quarter, up 4.3% in both October and November before easing to 4.0% growth in December. But the national number smooths over wide differences across states, industries, age groups, and ethnic communities.

RM2,600 A Month Between The Highest And Lowest States

For workers in lower-wage states, a job offer in Kuala Lumpur or Selangor can look attractive on salary alone. But cost of living — especially housing and transport — narrows that gap considerably.Where you work has a large effect on your wages. Workers in Wilayah Persekutuan Kuala Lumpur earn a median monthly wage of RM4,391, while those in Kelantan earn RM1,800 — a gap of nearly RM2,600 every month.

DOSM’s state-by-state figures for December 2025:

State	Median Monthly Wage (Dec 2025)
W.P. Kuala Lumpur	RM4,391
Pulau Pinang	RM3,500
Selangor	RM3,400
Johor	RM2,982
Melaka	RM2,864
Negeri Sembilan	RM2,664
W.P. Putrajaya	RM2,582
W.P. Labuan	RM2,382
Pahang	RM2,300
Perak	RM2,300
Sarawak	RM2,300
Terengganu	RM2,200
Kedah	RM2,164
Sabah	RM2,045
Perlis	RM1,864
Kelantan	RM1,800

Median Wages By Industry

Your industry matters too. Mining and quarrying, which accounts for just 0.5% of formal employees, recorded the highest median monthly wage at RM7,900 in December 2025. Manufacturing followed at RM3,422, construction at RM3,127, and services at RM3,120.

Agriculture workers, representing 1.8% of formal employees, earned a median of RM2,564, though the sector posted one of the stronger growth rates at 7.6% year-on-year.

Most formal workers in Malaysia are in the services sector. Its median of RM3,120 sits just below the national figure, partly because the category is so broad, covering everything from retail and hospitality to finance and professional services.

Age and Peak Earning Years

Wages tend to rise with age and experience. Employees aged 45 to 49 earned the highest median monthly wage at RM4,245 in December 2025. Workers in their 30s and early 40s were in the RM3,000 to RM4,000 range, while those under 25 earned below RM2,000.

The youngest workers, those under 20, recorded the fastest wage growth at 11.3% year-on-year, with a median of RM1,700 in December 2025. That growth rate reflects a low base, but it also tracks with the stepped increases to Malaysia’s minimum wage, which affects entry-level formal workers most directly.

If you are early in your career, your median wage will likely increase through your 30s and 40s. That trajectory is worth factoring into how you structure debt repayments, savings targets, and longer-term financial goals.

Ethnic Wage Differences Remain Wide

DOSM’s data breaks out median wages by ethnicity. In December 2025, Chinese formal employees earned a median of RM4,767, Indian employees RM3,120, and Bumiputera employees RM2,627. The “Others” category recorded RM2,227.

These gaps reflect sector concentration, educational attainment, geographic distribution, and occupational type, and have been a persistent feature of Malaysia’s wage data for years. The national median covers a wide range of outcomes by community.

Fewer Workers At The Bottom, But A Wide Top

In December 2024, 21.0% of formal employees earned below RM1,700 per month. By December 2025, that share had dropped to 8.4% — a decline of 12.5 percentage points in a single year.

That drop is closely linked to Malaysia’s minimum wage increase. The floor rose from RM1,500 to RM1,700, taking effect from 1 February 2025 for larger employers and 1 August 2025 for all employers nationwide. Workers who were previously clustered just below that level have since been lifted above it.

The gap between the top and bottom of the wage distribution, however, remains wide. The bottom 10% of formal employees earned RM1,700 or less per month in December 2025. The top 10% earned at least RM11,122 — a difference of more than RM9,400 every month.

About 12% of formal workers earned RM10,000 and above in December 2025. If you are in that group, your financial planning needs, from tax exposure to investment capacity, look very different from those of workers earning closer to the median.

What The Median Actually Tells You

The RM3,167 median is a benchmark. If you earn above it, you are in the upper half of formal workers. If you earn below it, you are in the lower half. Where you actually stand depends on your expenses, dependents, debt, and goals.

For salary negotiations, it is a data point. For financial planning, it is a reminder that the “average” Malaysian wage and your personal reality can be quite different, especially if you work in a lower-wage state or sector, or are early in your career.

The formal sector figures also exclude self-employed workers, gig workers, and unpaid family workers. If you are in any of those categories, the DOSM data does not reflect your situation at all.

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