Average Salary in Malaysia: Latest Pay, Trends & More in 2025

With that said, understanding salary trends in Malaysia is essential for any job seekers, employers or expatriates looking to navigate to the ever-evolving market. To keep track of all the changes due to economic shifts, wage policies, or sector-specific average salary in Malaysia changes, you will be able to be well informed to make career decisions and hiring decisions. In this guide, we provide detailed information about the average salary in Malaysia 2025, including a breakdown by sector, location, and factors that influence it. Let’s learn more about the Average salary in Malaysia for Indian in this blog!

Latest Facts & News

Keeping up with those trends means employees and employers can align expectations and plan finances effectively. Here are the latest facts and news about average salary in Malaysia for 2025:

• The average salary in Malaysia per month will rise to between RM3,971 and RM4,053 in 2025.

• The minimum wage went up to RM1,700 per month in February 2025.

• Public sector salary hikes are influencing private sector wages.

• The Progressive Wage Policy aims to reduce income gaps.

• Urban workers benefit most from wage increases because they have to deal with higher living costs.

• The high-tech and energy sectors are forecasted to see a 5% salary increase.

• The median salary remains at RM 5,790 per month. Those are the typical earnings you can expect.

• In rural areas, salaries are lower, but living costs are lower, too.

What Drives The Average Salary in Malaysia?

The average salary in Malaysia is different based on industry, job title and location. Understanding average salary in Malaysia trends will allow professionals to make informed decisions about their career moves and employers to set competitive compensation packages that help them attract the right talent.

Malaysia Average Monthly Salary (2025)

For 2025, that average monthly salary is projected to be RM6,610. It accumulates the total income of individual employees based on reported salaries across different industries.

Median Salary Insights 2025

In Malaysia, the average salary in Malaysia per month is RM5,790. (This is the mean salary, which means that the median salary is earned by half of the workers below this amount and by half of the workers above it.) The average salary in Malaysia for Indian, unlike an average salary in Malaysia, is less skewed by outlier high and low incomes and thus can paint a clearer picture of what is considered 'normal' earning potential.

Average Salary In Malaysia by Sectors (2025)

The average salary in Malaysia differs widely depending on the industry, impacted by factors such as the level of demand for jobs, specialization, and required skill levels. Let’s break down the Average salary in Malaysia for Indian:

Average Salary by City in Malaysia (2025)

Salaries vary between urban and rural areas due to differences in living costs and job opportunities.

Urban areas such as Kuala Lumpur and Johor Baharu tend to offer higher salaries due to increased demand for skilled professionals and higher living costs.

Minimum Wage Trends in Malaysia for 2025

The Malaysian government has revised the minimum wage to RM1,700 average salary in Malaysia per month, effective February 2025. The policy aims to increase workers’ earnings and standard of living while keeping businesses’ average salary in Malaysia structure competitive.

Factors Affecting Salaries in Malaysia

Several factors influence salaries in Malaysia:

• Education Level: Higher education leads to better salaries.

• Industry Demand: The growing IT and healthcare sectors offer higher salaries.

• Experience: More experience means higher pay.

• Location: Urban professionals earn more due to the higher cost of living.

• Company Size: Multinational corporations pay higher salaries than local firms.

Also Read: Jobs in Malaysia for Indian Professionals: Latest Guide

Salaries for Indians in Malaysia (2025)

For Indian expats in Malaysia have different average salary in Malaysia trends based on their profession and qualifications. On Average salary in Malaysia for Indian:

Work permits, taxes and cost of living adjustments also affect expat salaries.

Malaysian Wage Policy Updates 2025

The Malaysian government has introduced several wage policy updates in 2025 to ensure fair pay, economic stability and workforce competitiveness. Here are the key changes:

1. Minimum Wage Increase

• New Minimum Wage: RM1,700 Minimum salary in Malaysia per month (February 2025)

• Previous Minimum Wage: RM1,500 Minimum salary in Malaysia per month (2022–2024)

• Impact: It benefits low-income workers, improves living standards, and increases disposable income.

2. Progressive Wage Policy

• To reduce the income gap between high and low-wage earners.

• The annual average salary in Malaysia is incremented based on productivity and company revenue.

• Companies adopting the policy get government incentives and tax benefits.

3. Public Sector Salary Revision

• 5%–8% average salary in Malaysia increase for public sector employees.

• Mainly benefits teachers, healthcare workers and civil servants.

• To make public sector jobs more competitive with private sector salaries.

4. Private Sector Wage Growth

• 4%–6% average salary in Malaysia increments across major industries.* High-tech, energy and finance sectors to see the highest pay increases (5%–7%).

• Employers should adopt structured pay scales to retain the workforce.

5. Regional Wage Adjustments

• Urban areas like Kuala Lumpur and Johor Baharu get higher minimum wages due to the higher cost of living.

• Rural areas see gradual wage increases with government subsidies to make it affordable.

6. Gig Economy & Freelancer Wage Regulations

• New policies will be put in place to ensure minimum wage compliance for gig workers (Grab, FoodPanda, freelancers, etc.).

• Employers to contribute to EPF (Employees Provident Fund) and SOCSO (Social Security) for gig workers.

• Freelancers to register under new income security schemes.

7. Sector-Specific Wage Adjustments

• Healthcare & IT: 6%–8% wage growth due to high demand for skilled professionals.

• Manufacturing & Retail: 3%–5% wage growth due to economic recovery.

• Construction & Engineering: The average salary in Malaysia increased by 4%–6% due to infrastructure projects.

8. Expatriate Salary Regulations

• Stricter work visa salary requirements for foreign professionals.

• The higher minimum average salary in Malaysia for Employment Pass (EP) holders in high-skilled industries.

• More opportunities for local talent development through employer-driven upskilling programs.

Top 10 Highest-Paying Jobs in Malaysia (2025)

Latest Cost of Living vs. Salary in Malaysia: Experts Insights 2025

It is well known that living costs in Malaysia are relatively low compared to many developed countries, but are people's salaries keeping up with the cost of living? Let’s look at how the Minimum salary in Malaysia per month correlates with the cost of living and where you can get the most bang for your buck (average salary in Malaysia versus cost of living).

Are Salaries Keeping Up With the Cost of Living?

While the average salary in Malaysia per month is RM6,610, the cost of living varies greatly based on location, lifestyle, and family size. Here’s a rough breakdown of common monthly expenses for a single person vs. a family in urban areas:

Of course, the above RM6,610 single professional lifestyle is still doable. Families in large cities would often struggle to maintain a high quality of life without having both partners working or outside sources of income.

Cities with the Highest Salary-to-Cost-of-Living Ratio

Kuala Lumpur and Johor Baharu, for example, might pay more, but their costs of living are higher too. Here’s a breakdown of the top cities based on average salary in Malaysiay-to-cost-of-living ratio:

Key Takeaways

• Kuala Lumpur has the highest salaries but also the highest expenses, making savings difficult.

• Penang and Malacca offer a balanced salary-to-cost ratio, which is ideal for professionals seeking affordability.

• Ipoh and Kota Kinabalu provide affordable living with reasonable salaries, making them attractive for those prioritizing savings.

Predictions for Salary Growth Beyond 2025

1. Improvements in industries and government policies affect future average salary growth in Malaysia.
2. Designed to Combat Income Inequality: Progressive Wage Policy
3. Salaries in high-tech industries are forecast to rise by 8%.
4. Wage increases are expected in the healthcare and energy sectors.
5. Skilled professionals generally command higher salaries due to remote work opportunities.

Conclusion

It means that salaries will continue to grow, especially in the high-tech and finance sectors. These trends give a better understanding of how professionals and employers can manoeuvre Malaysia’s ever-changing average salary in Malaysia landscape. Researching average salary in Malaysia trends to facilitate fair pay and professional growth in the country’s dynamic job market. To learn more about Malaysian immigration, visit TerraTern now!