What is driving the RM3,167 average monthly wage for formal employees?

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Average Monthly Wage for Formal Employees Reaches RM3,167 in December 2025

The average monthly wage for formal employees in Malaysia reached RM3,167 by December 2025, representing a 4 per cent increase from RM3,045 in December 2024. This wage growth occurred within a formal employment sector that expanded by 3.6 per cent year-on-year, bringing the total number of formal employees to 7.08 million.
Wage Growth Trends in the Fourth Quarter

Wage growth demonstrated consistency throughout the final quarter of 2025. Median monthly wages saw increases of 4.3 per cent in October and November, followed by the 4 per cent rise in December. This sustained upward trend contributed to the overall average wage figure.
Gender and Ethnic Wage Disparities Persist

While the overall average wage increased, gender and ethnic disparities in earnings remain apparent. Male formal employees, comprising 55.1 per cent of the workforce, earned an average of RM3,167 monthly. Female employees, making up 44.9 per cent of workers, recorded a slightly lower median wage of RM3,120. In terms of ethnicity, Bumiputera employees had a median wage of RM2,627, Chinese employees earned RM4,767, and Indian employees received RM3,120.
Age and Sectoral Variations in Earnings

Earnings varied significantly across different age groups and economic sectors. Employees aged 45 to 49 reported the highest median wages in the last quarter, reaching RM4,245 in December. Conversely, employees below 20 years old experienced the most substantial wage increase, with their median wage rising 11.3 per cent year-on-year to RM1,700. The mining and quarrying sector offered the highest median wages at RM7,900, despite representing only 0.5 per cent of formal employment. In contrast, the agriculture sector, which constitutes 1.8 per cent of the workforce, recorded the lowest median wage at RM2,564.
Regional Economic Performance Reflected in Wages

Geographical location also played a role in wage levels, with Wilayah Persekutuan Kuala Lumpur leading in median monthly wages at RM4,391. Other areas with high median wages included Pulau Pinang (RM3,500) and Selangor (RM3,400). Conversely, Kelantan reported the lowest median wages at RM1,800, followed by Perlis (RM1,864) and Sabah (RM2,045). The data also indicated that 8.4 per cent of Malaysia’s formal employees earned less than RM1,700 in December 2025, a decrease from the previous year.

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What is driving the RM3,167 average monthly wage for formal employees?

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