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Fewer than 10 percent of Malaysian employees earn below minimum wage

Updated: May 3, 2021

As much as 8.8% of workers in Malaysia are paid a basic salary of at most RM1,200 monthly wage. According to the Employment Insurance System (EIS), an amount of 62.5% of workers, including graduates hired in July to December of 2020 received a range of basic wages from RM1,200 to RM1,499 monthly. The chief statistician of Malaysia, Datuk Seri Dr Mohd Uzir Mahidin said that starting salaries for employed graduates in 2020 have dropped as compared to the previous year. New graduates with a degree earned within about RM1,001 to RM1,500 per month while it was between RM2,001 and RM2,500 in 2019. Simultaneously, diploma graduates have made the same amount of monthly income whereas RM5,00 to RM10,000 was earned by PhD and Master’s graduates in 2020.

Wage patterns

The Minister of Human Resources, Datuk Seri M Saravanan said that three elements impact the concentration on wage levels, which are stronger demand for non-graduates jobs, location, and cyclical unemployment due to the Covid-19 pandemic. He added the salary ranges from RM1,000 to RM2,999 and RM1,000 to RM1,499 has risen 12%, while the wage of RM3,500 to RM3,999 remained stagnant during 2020.

Job opportunities

A representative of 45.5% of jobseekers with tertiary education dominated the labor supply in the fourth quarter of 2020 even though about 70% of job openings offered by recruiters were for non-graduate jobs. Saravanan said that those tertiary-educated applicants preferred non-graduate jobs like clerks, sales assistants, admin assistants, and customer service in the meantime while the economy fully recovers, offering more graduate job opportunities.

Recovering economy

Randstad Malaysia head of operations Fahad Naeem believes that there are still many industries and companies that are developing their services due to higher demand in the market and digitalization. He said the tech industry has significantly grown in the past year. Companies will also start to hire new talent as the overall business sentiment improves.

Digitization reduces unemployment

Hiring in the tech sector appears to be stabilizing. The nature of work is being redefined as companies and workers seek both flexibility and fit. This trend has been accelerated by the Covid-19 pandemic, pushing into living in a digital economy on a fast track. Recruit Hero is now on the track; being the best smart digital hiring tool that enables companies to select the best talent remotely. Register today and try out free 14-days of hiring. Lookup for more details and follow our Facebook and LinkedIn.


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