What is the average salary in Malaysia? & Factors affecting

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The average monthly salary in Malaysia is approximately 6,610 MYR, translating to approximately 1414 USD as per conversion rates in November.


Malaysia; the vibrant and fast-growing economy of South East Asia, offers a distinctive labour market scenario. 


Understanding the average salary in this country is crucial for businesses and individuals alike, whether for career planning, investment decisions, or organizational structuring. 


This post discusses the average pay in Malaysia, the statistics, trends and their determinants, and gives an overall review.


Statistics and Trends Around Malaysia’s Average Salary


1. Average and Median Salary in Malaysia:


A. Average Salary in Malaysia:


The average monthly salary in Malaysia is approximately 6,610 MYR(1414 USD), according to SalaryExplorer, which sums up to about 79300 MYR (16971.64 USD) annually. This total includes such like housing, transport and any other benefits and the variation varies between the different careers. For example, the highest average salary per month may reach up to 29,400 MYR.


The average salaries in Malaysia can range from 1,670 MYR the lowest average to 29,400 MYR  the highest average, but note that the actual maximum salary is higher.


This average salary represents a blend of various job titles and industries, providing a general idea of the earning potential in Malaysia. The average salary in Malaysia Varies continuously depending the factors like education qualifications, location, work experience and industry.


B. Median Salary:


The median salary indicates the middle value in the salary collection. It is identified as the middle value in a salary collection arranged in increasing or decreasing order.


The median salary in Malaysia stands at 5,810 MYR per month. This figure indicates that half of the working population earns less than this amount, while the other half earns more.


The median salary offers a more balanced view, as it is less affected by extremely high or low salaries in the calculation.


C. Minimum Wage in Malaysia:


Minimum wages serve as a crucial safeguard for wage earners, ensuring they receive fair remuneration for their labour. Minimum wages have been defined as the minimum amount of salary that an employer is required to pay wage earners for the work performed during a given period, which cannot be reduced by a collective agreement or an individual contract.


Malaysia has increased the national minimum wage in May 2022 by 25 per cent from 1,200 ringgit (US$273) to 1,500 ringgit (US$341), however, employers with less than five employees were granted an exemption to the increase in wages until January 1, 2023, before being extended again to July 2023.


For detailed information, you can visit official websites or go through the MINIMUM WAGES ORDER 2022.


2. Factors Affecting Average Salary:


A. Average Salary by Sector:


The salary in Malaysia varies by sector. Here, we present a summarized table reflecting the average salaries across different industries:

Industry Average Monthly Salary (MYR)
Banking and Financial Services
Customer Service
IT and Computer Science
Health and Medical
Real Estate


The wage gap among industries is evident in these statistics. The substantial incomes in the Health and Medical, Legal, and Banking sectors are emblematic of the high demand and specialized skills demanded in these industries. On the other hand, sectors such as Administration and Construction typically offer lower average salaries.


Note: These are average salaries of the entire industry and the salaries of each profession may vary. For example, the salary of a surgeon is much higher than that of a nurse. 


B. Average Salary by Location:

Average monthly salaries in Malaysia vary depending on the city, taking into consideration factors such as the cost of living and current economic conditions. Let’s take a look at the average salaries in several major cities in Malaysia.

City Average Monthly Salary (MYR)
Kuala Lumpur
Johor Bahru
Kota Kinabalu


As the nation’s capital, Kuala Lumpur boasts one of the highest average salaries, reflective of its thriving economy and elevated cost of living. In contrast, Putrajaya – an orchestrated urban center and the administrative capital – presents noticeably lower average salaries.


C. Average Salary by Experienc


  • Salary is mainly dependent on one’s experiences and more experienced people get paid more.
  • Usually, employees that have been active for 2-5 years are paid about 30% higher than entry level and junior workers in any field or industry in Malaysia.
  • On average, individuals with more than five years of experience can expect to earn 36% more than people with less than five years of experience.
  • After a ten years’ experience, the salary increases by 21%. For those that exceed fifteen years, there is another 14%.

These figures are mere approximations since when we consider the different job titles the estimates will be more precise.


D. Average Salary by Education


Most people are aware that there is some correlation between higher education and higher salary, but by how much can one expect to see his/her salary increasing after obtaining a degree?

Here are the salaries of employees with different degrees obtained at the university and holding similar positions in different fields, according to a study by Salary Explorer:

People who had certificates and diplomas were on average 17% paid more than those who had finished only high school.

People with bachelor’s degree were earning 24% higher than holders of certificates and diplomas.

A Master’s Degree holder received 29% more than the Bachelor’s Degree graduates.

Lastly, a person with a Ph.D degree was earning an average of around 23%  more than those with the Masters Degree.


3. Average Annual Salary Increments


The average annual salary increment in Malaysia is approximately 9% every 17 months. However, this can vary based on performance, industry, and other factors. Employees typically see a 6% salary increase annually.

Should You Consider Outsourcing to Malaysia?

Are you pondering the idea of outsourcing to Malaysia? This opportunity presents a multitude of advantages and potential obstacles to consider. In this discussion, we delve into the crucial factors at play.

A. Key Benefits of Outsourcing to Malaysia:

  1. Technological Leaders: Technological innovation is speeding up in Malaysia as it becomes a leading spot in south east Asia. The country has an excellent IT infrastructure and a pool of tech-savvy professionals, providing an advantage in the provision of technology-based services. Skilled softwar e enginners in Malaysia have an average salary that matches the global standard hence guaranteeing quality in the tech projects.
  2. Investor-Friendly Policies: Business-friendly environment of Malaysia. It is home to policy-friendly governments with stable economies, which makes it a suitable site for outsourcing several business processes. The policies are also useful since they make things easy and also save costs making them one of the attractive sites to investors.

B. Major Challenges of Outsourcing to Malaysia:

  1. Limited Competitive Human Capital: Despite the availability of skilled labor, the competition for top talent in Malaysia can be intense.  As a result, businesses may encounter difficulties in securing highly specialized skills, especially in industries that are constantly evolving. This challenge could potentially affect the efficiency and caliber of projects, necessitating careful strategizing and deft resource management.
  2. Rising Cybersecurity Breaches: Along with technological advancement Malaysia is moving steadily into the digital domain and at the same time, it experiences serious cyber security risks. Cyber security measures should be considered in outsourcing operations, especially those dealing with sensitive information. To overcome this challenges, business requires adding investment into security infrastructure and protocols to protect business interest.

What is Time Champ? Its Importance in Monitoring Outsourced and Remote Workers

Time Champis an all-encompassing solution for managing outsourced and remote teams. It has time tracking, productivity tracking, project management and many other excellent features. 


Time Champ provides information relating to employee activities which help in having a proper project supervision, maintain accountability, and increase efficiency. 


With its intuitive interface and powerful data analysis capabilities, it serves as an excellent management tool for dispersed teams.


Final Thoughts


Overall, it is crucial for both businesses and individuals to understand the concept of the average salary in Malaysia and the various elements that influence it. 

Malaysia has a very diverse economy and its growing workforce makes it an excellent investment option for businesses.


Nevertheless, it is very important to understand the intricacies of the mean salary, cost of living, and other economic aspects in order to make well-informed decisions. 


Understanding Malaysia’s salary dynamics is important if one is establishing an operation, recruiting employees or outsourcing.


With the constant influence of globalization on the workforce, having efficient tools such as Time Champ is crucial for the effective management of remote and outsourced employees.


We encourage our readers to explore the benefits of Time Champ for their remote workforce management requirements, guaranteeing optimal output and effectiveness in today’s interconnected world.


Frequently Asked Questions

Salary in Malaysia is influenced by various factors such as industry sector, location, experience level, and educational qualifications. For instance, sectors like IT and Banking offer higher salaries compared to others. Cities like Kuala Lumpur and Ipoh generally have higher average salaries compared to other areas. Additionally, more experience and higher educational levels usually correlate with increased salaries.

The average monthly salary in Malaysia is approximately 6,610 MYR(1414 USD), according to SalaryExplorer, which sums up to about 79300 MYR (16971.64 USD) annually. This total includes such like housing, transport and any other benefits and the variation varies between the different careers. For example, the highest average salary in Malaysia per month may reach up to 29,400 MYR.

Malaysia has increased the national minimum wage in May 2022 by 25 per cent from 1,200 ringgit (US$273) to 1,500 ringgit (US$341), however, employers with less than five employees were granted an exemption to the increase in wages until January 1, 2023, before being extended again to July 2023.


 Outsourcing to Malaysia offers advantages like access to a pool of technological expertise and investor-friendly policies. The country’s stable economic climate and competitive salary rates make it an attractive destination for global businesses looking to outsource various operations.

While outsourcing to Malaysia is beneficial, it poses challenges like the intense competition for highly skilled talent and the need for robust cybersecurity measures. These challenges require businesses to strategize effectively in resource management and security infrastructure to safeguard their interests.

Location is a significant factor affecting salaries in Malaysia. Different cities and regions in the country have varying cost of living indices and economic activities, which in turn influence the average salaries. For instance, Kuala Lumpur, being the capital and a major business hub, offers an average monthly salary of 7,160 MYR, reflecting the high demand for skilled labor and the cost of living in the city. On the other hand, Kota Kinabalu, while still offering competitive salaries, has an average monthly salary of 6,560 MYR, slightly lower than Kuala Lumpur. This variation is indicative of regional economic differences and the local job market dynamics.

The basic salary in Malaysia typically ranges from 1,670 MYR to 4,200 MYR. This range is influenced by various factors such as profession, experience level, and educational qualifications. For instance, entry-level positions or jobs requiring minimal qualifications often offer salaries towards the lower end of this range. In contrast, roles demanding specialized skills or higher education can command salaries closer to the upper limit. This basic salary serves as a foundation for the total compensation, which may include additional benefits such as bonuses, housing allowances, and healthcare.

In Malaysia, salaries vary significantly across sectors due to factors like skill demand, economic impact, and sector-specific challenges. High-demand sectors like IT, Banking, and Healthcare generally offer higher average salaries, reflecting the specialized skills and significant contributions these industries make to the Malaysian economy.