• Hanis Najmi

Malaysian Mean Monthly Salary and Allowance Drop 9% in 2020


Average salary and monthly allowance received by Malaysians in 2020 dropped 9 per cent. The salaries fall for the first time since the data series started in 2010, according to the Department of Statistics Malaysia (DOSM) reported in the 2020 Salaries & Wages Survey Report.


Malaysia’s economy has been adversely affected by COVID-19 and the subsequent mobility restrictions implemented to flatten the curve of the pandemic.





In consequences of health crisis and economic throughout the year 2020, Malaysia’s Chief Statistician Datuk Seri Mohd Uzir Mahidin said Malaysia's labour market experience uneven momentum causes many people to lose job besides the freeze on recruitment and no new intake which next lead to the decline in the labour force rate. In an attempt to curb the country's worsening Covid-19 situation, only essential economic and service sectors allowed to operate which there is a limit on operating hours. Under the practice of tight standard operating procedures (SOP) to reduce movement, these measurements reduce the hours of work.


Therefore, the mean monthly salaries and wages received by Malaysian citizens in all sectors by economic activity in 2020 declined to RM2,933 in 2020 after two consecutive years of recording more than RM3,000. The sectors which were hardest hit were agriculture, which reported a 20% fall in wages, mining 17.7%, construction 10.4%, services 9.4% and manufacturing 2.8%. Among the industries in the services sector comprising wholesale and retail trade; repair of motor vehicles and motorcycles, they recorded a decline of 14.9% in mean monthly salaries and wages.


According to DOSM, they recorded a decline of 14.9% in mean monthly salaries and wages while the accommodation and food and beverage service activities recorded a fall of 13.7%. The chief said the mean monthly salaries & allowance for skilled employees was RM4, 619. Managers received the highest mean monthly salaries and wages at RM6,479 followed by professionals (RM5,301) and technicians and associate professionals (RM3,313) in this skilled occupation category.


However, this year it has been recorded that the mean value received by managers decline the most compared to the previous year. Meanwhile, the mean value of semi-skilled employees was RM2,007. Within this category, it was observed that mean salaries and wages received by clerical support workers was RM2,370.



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