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Thursday, December 8, 2022

Malaysia records a Negative Growth for Median Wages for 1st time in 11 Years

NewsMalaysia records a Negative Growth for Median Wages for 1st time in...

Yesterday (14 July), the Department of Statistics Malaysia (DOSM) had released the annual Salaries & Wages Survey Report for the year 2020.

According to the summary of the report, Malaysians have recorded a negative growth for median wages for the first time ever since the annual national survey first began 11 years ago.

In their report, DOSM said that Malaysia’s monthly median salaries had decreased by 15.6% from RM2,442 to RM2,062 last year, while the monthly salaries had decreased by 9% from RM3,224 to RM2,933.

Meanwhile, for the past five 5 year before 2020, Malaysians enjoy an average increase of 6.32% in their median salaries, while the average salaries increased on an average of 6.28%.

Source: DOSM

To better understand the difference between median and average income, the median income is the exact middle income earned by someone in the job or career field and it is often being considered to be a more accurate depiction of a population’s income level.

On the other hand, the mean income is only an average of all incomes for the position.

Based on the data DOSM have collected, semi-skilled workers suffered the worst drop in median salaries and wages where they suffered a 16.15% decrease from RM1,900 to RM1,593. The high-skilled workers and low-skilled workers suffered a decrease in median salaries of 10.22% (from RM4,468 to RM4,011) and 10.4% (RM1,422 to RM1,274) respectively.

While analysing the decrease of median salaries and wages by the age groups, DOSM said that the youths and elderly were being affected the most, as shown in the table below:

15-24: 17% — from RM1,520 to RM1,253
25-34: 15% — from RM2,415 to RM2,054
35-44: 2% — from RM2,996 to RM2,926
45-55: 10% — from RM3,021 to RM2,718
54-65: 17% — from RM2,736 to RM2,268

Meanwhile, those between the ages of 35 to 44 suffered only 2% decrease in their median income.

Source: The Star

DOSM also analyse the median salaries and wages of Malaysians by segregating them into those who live in the urban and rural areas.

DOSM said that people who live in urban areas have their median salaries decreased by 9.2% from RM3,405 to RM3,089, while those who lived in rural areas have their median salaries decreased by 5.5% from RM2,208 to RM2,086.

DOSM added that those who work in the agriculture sector suffered the highest average pay cut at around 20%, followed by the mining and quarrying sector at 17.7%, the construction sector at 10.4%, and the servicing sector at 9.4%.

Source: A Job Thing

If analysed the data by the different education levels, those who graduated only from primary education were the most impacted, with a 18.3% decrease from RM1,560 to RM1,274. Meanwhile, those who graduated from Tertiary education suffer the least, with 10.3% from RM3,901 to RM3,499.

DOSM also highlight that the total number of recipients of salaries and wages had grew at a slower rate of 2.1% to 9.4 million people last year as compared to 2019, where the growth is at 5% to 9.2 million people.

Lastly, DOSM said that the overall decrease in salaries and wages is mainly due to the Covid-19 pandemic and the implementation of the Movement Control Order (MCO) in the country throughout 2020.

What do you think about this? Share your thoughts!

Check out the infographics from DOSM here:

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