LABOUR COST IN MALAYSIA 2016 Final Report - National Labour Cost Survey 2016 (F | Page 48

3.3.7.5 Total Labour Cost: Summary of Key Findings
Following are the key insights from the above labour cost analysis:
1. Average total labour cost per full-time Malaysian employee per month in 2016 (at the
national level) was estimated to be RM6,834.
2. Wage cost represents 80% – 95% of total labour cost. Within wage cost, basic wage
constitutes the highest cost. 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.
3. Foreign workers had the highest average overtime payment per employee.
4. Cost of facilities and benefits was the largest non-wage cost component (excluding
severance). Average cost of facilities and benefits per expatriate / PR employee was 10 times
more than a Malaysian employee.
5. Respondents from the ICT and financial industries reported the highest average total labour
cost per full-time Malaysian employee, followed by professional / scientific / technical
activities and mining and quarrying.
6. Average total labour cost per Malaysian employee in the Central region was 50% - 70% higher
than other regions.
7. Average total cost per expatriate / PR manager was 2.2 times more than a Malaysian, while
cost per expatriate / PR professional was 3.8 times more.
8. Within the elementary occupation category which employed 45% of the total foreign workers
in Malaysia as of June 2016, the average total cost per Malaysian employee was 38% higher
than a foreign worker. However, this does not include the levy cost which was not borne by
the employers. The average levy cost per foreign worker was approximately RM1,200 per
year in 2015.
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