LABOUR COST IN MALAYSIA 2016 Final Report - National Labour Cost Survey 2016 (F | Page 20

The table below outlines the average total labour cost per full-time employee per month at the
national level.
Table 2-1: Average total labour cost per full-time employee per month (national level)
Malaysians Expatriates and PR Foreign workers
RM 6,304 RM 22,296 RM 1,962
Non-wage cost* RM 530 RM 5,231 RM 309**
Total labour cost RM 6,834 RM 27,527 RM 2,271
Wage cost
* Does not include severance payment and recruitment cost
** Does not include levy, which was approximately RM1,200 per worker per year in 2015
The wage cost represents a huge percentage (80% – 95%) of total labour cost. Within wage cost,
basic wage constitutes the highest cost. Based on the data collected from this survey, average
basic wage per full-time Malaysian employee was RM3,100 per month, while per expatriate / PR
employee and per foreign worker was RM12,975 and RM1,105 respectively. Average total labour
cost per full-time Malaysian employee per month in 2016 (at the national level across all job
categories, industries, regions and establishment sizes) was estimated to be RM6,834.
Across selected job categories, total labour cost for a full-time Malaysian manager and
professional averaged RM16,661 and RM7,634 per month respectively. The average cost of an
expatriate / PR manager was 2.2 times more than a Malaysian, while the cost of an expatriate /
PR professional was 3.8 times more. Within the elementary occupation category which employed
45% of all foreign workers as of June 2016, the average total cost per Malaysian employee
(RM2,935) was 38% higher than a foreign worker (RM2,120).
Respondents in the ICT and financial industries reported the highest average total labour cost per
full-time Malaysian employee per month (RM10,597 – RM11,299), followed by professional /
scientific / technical activities (RM8,968) and mining and quarrying (RM8,511). Geographically,
average cost per full-time Malaysian employee in the Central region (RM8,738) was 50% - 70%
higher than other regions.
National Labour Cost Survey 2016: Final Report
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