Median wage down 15.6pct in 2020

 

Income levels took a massive hit in 2020 after monthly median salaries and wages grew -15.6 percent while the average was -9 percent.

According to the Department of Statistics (DOSM), this is the first time negative growth in monthly salaries and wages were recorded since such data was collected beginning 2010.

In 2019, median and average monthly salary and wages were RM2,442 and RM3,224 respectively. This dropped to RM2,062 and RM2,933 respectively in 2020.

"The median value was RM2,062 indicating half of (the 14.96 million) employees earned above this value and half earned below," said the DOSM.

Semi-skilled workers were the hardest hit. Their median monthly salary and wages last year was RM1,593, with a -16.2 percent growth compared to the previous year.

The reduction in median salary and wages in 2020 for skilled and low-skilled workers were 10.2 percent and 10.4 percent.

Those in urban areas experienced a higher rate of reduction in income compared to those in the rural areas.

The DOSM said all sectors recorded a decrease in mean monthly salaries and wages. The worst-hit were agriculture (-20 percent), mining and quarrying (-17.7 percent) and construction (-10.4 percent).

The worst-hit service sub-sectors were wholesale and retail; repair of motor vehicles and motorcycles; accommodations and food and beverage service activities.

The DOSM said Malaysia's situation was not unique, citing International Labour Organisation (ILO) studies which indicated that the growth rate of average wages for two-thirds of countries in the world was on a downward trend, including Japan, the UK and South Korea.

Putrajaya's subsidies and employment retention programmes, said the DOSM, had helped to mitigate job losses. - Mkini