Median Household Income By State: How Much Do Malaysian Households Earn

Household income is the combined income of everyone living in your household.    

In Malaysia, household income is typically divided into three categories: Top 20% (T20), Middle 40% (M40), and Bottom 40% (B40). For example, the T20 group consists of the highest earning 20% of households in the country. 

We look at the Household Income Survey Report 2022 by the Department of Statistics Malaysia (DOSM) to understand how much Malaysians are earning in different states across the country. 

Median Income For T20 Households Is RM15,867 

There were 7.9 million households in Malaysia with the average household having 3.8 persons living in them. 

Paid employment was the main source of income for Malaysians. The survey also took into consideration other sources of income including self-employment, property and investment, and current transfers. Income from current transfers could include government assistance, pension, and other income received periodically. 

The highest earning 20% of households or the T20 households earned 46.3% of total household income in Malaysia. M40 households earned 37.6% while B40 only earned 16.1%. 

The median income for T20 households was RM15,867. M40 and B40 households earned a median income of RM7,694 and RM3,440 respectively.   

Kuala Lumpur Households Have The Highest Income 

Source 

A federal territory is a region that’s governed directly by the federal government. Whereas a state has its own state government.  

The median household income in 2022 was RM6,338.   

Besides the overall median household income, the survey also looked into the income in each state.  

As expected, households based in Kuala Lumpur (KL) recorded the highest median gross income of RM10,234. As the capital of Malaysia, KL is the focal point of diverse economic and finance activities which also contribute the highest gross domestic product (GDP) for the country. 

This was followed by the Federal Territory of Putrajaya and the state of Selangor where median household incomes were RM10,056 and RM9,983 respectively.  

We can observe that households in central regions, closer to KL and where there is perhaps more focal points of economic activities earn higher incomes.   

Households in states like Johor and Penang have a median income of RM6,879 and RM6,502.  

The states of Kedah and Kelantan recorded a lower median household income of RM4,402 and RM3,614. 

Read Also: Malaysia Property Rental Guide: How Much Does It Cost To Rent In Kuala Lumpur? 

Household Income By Education Level 

The survey also explored median household income based on education levels. 

Source 

The higher the education level of the head of household, the more income is generated by the household. A household headed by a Degree holder had a median income of RM12,382, while households headed by a Diploma holder earned RM8,256.  

Households led by a Malaysian Higher School Certificate (STPM) and Malaysian Certificate of Education (SPM) holder record a median income of RM6,208 and RM5,557.    

The heads of a household with a Lower Secondary Assessment (PMR) qualification and no education certificate have a median household income of RM4,483 and RM3,419.   

Household Income By Jobs 

Similarly, a household headed by someone with a higher job level records a higher median income. Managers and professionals who lead a household have a median income of RM12,943 and RM11,514.  

Meanwhile, a household led by technicians, clerical support workers, and those working in sales and service record median incomes of RM8,075, RM6,323, and RM5,327. 

Median Household Income In Malaysia Grew By 2.5%  

The number of households in Malaysia had increased to 7.9 million in 2022 from 7.2 million in 2019. Meanwhile, the average number of people living in a household in Malaysia had decreased to 3.8 persons in 2022.  

Median income for households had grown by 2.5% in 2022 to RM6,338. Households in both urban and rural areas recorded an increase of 3.3% and 2.2% respectively in median income to RM7,243 and RM4,094 in 2022.       

Read Also: How Much You Need To Earn To Afford The Different Range Of Cars In Malaysia 

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