According to the Department of Statistics Malaysia (DOSM)’s latest Second Quarter Salaries and Wages Report, Malaysia’s median salary for formal-sector employees increased by 4.3% year-on-year, reaching RM2,864 in June 2025.
Image credit: NST
While this growth reflects a positive trend in the country’s labour market, significant income disparities remain among different ethnic groups.
Income gaps among ethnic groups
The report shows notable differences in median earnings across ethnicities:
- Chinese employees: RM4,445 (The highest median salary)
- Indian employees: RM2,800
- Bumiputera employees: RM2,427
- Other ethnic groups: RM2,200
It reveals that Chinese workers earn over RM2,000 more than Bumiputera workers, highlighting an ongoing wage gap.
Wage growth and employment stability
The Malaysian labour market remains stable, with formal-sector employment rising by 3.5%, reaching 6.97 million workers in June. Salary growth has also been consistent with monthly increases of 3.6% in April, 5.4% in May, and 4.3% in June. Datuk Seri Mohd Uzir Mahidin, Chief Statistician at DOSM, noted that while wages continue to rise, ethnic disparities in pay remain an area of concern.
Image credit: HRM Asia
Why median salary matters
DOSM highlighted the value of the median salary as a more accurate reflection of typical earnings, as it is less influenced by extreme high-income outliers compared to the average salary.
This report underscores Malaysia’s positive employment trends but also points to the need for greater attention to closing the income gaps across different demographic groups.
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