Despite ongoing efforts to reduce wage disparities, men in Malaysia continue to earn more than women in the formal sector, according to recent data and analysis released in conjunction with United Nations International Equal Pay Day on September 18. Experts emphasize that simply increasing female workforce participation will not close the gender pay gap, underscoring the need for comprehensive policies targeting broader structural issues.

Data from the Statistics Department shows that in March 2026, the median monthly wage for men in the formal sector was RM3,064, compared to RM3,000 for women. This disparity reflects a consistent trend of higher earnings among male employees across various sectors, as detailed in the department’s Employee Wages Statistics (Formal Sector) report for the first quarter of 2026.

Researchers from the Khazanah Research Institute (KRI) highlight that addressing the gender pay gap requires a focus beyond recruitment figures to encompass the quality of jobs, opportunities for pay progression, workplace flexibility, and the penalties often associated with caregiving responsibilities. KRI research associate Adam Manaf Mohamed Firouz pointed to a lifecycle pattern in the gender wage gap linked to caregiving duties.

According to his analysis, there was virtually no wage gap among workers aged 25 to 29 in 2024, but it widened to 5.2% for ages 30 to 34 and further to 10.8% for those 35 to 39, a period when caregiving responsibilities typically intensify. The gap decreased somewhat for workers aged 40 to 49 before increasing substantially among older age groups, reaching 12.8% at ages 55 to 59 and 31.7% for those 60 to 64. Adam Manaf suggested this pattern also reflects generational differences, with younger cohorts encountering distinct labour market conditions compared with older workers.

A significant structural barrier remains the disproportionate burden of caregiving on women. The latest data reveals that among women outside the labour force, 67.9% cite family responsibilities as the primary reason for not working, a slight rise from 67.1% in 2010. This points to persistent challenges in balancing paid employment with caregiving roles despite existing policy measures. KRI research further indicates that women earn about 17.8% less than men for performing the same job.

Wan Amirah Wan Usamah, another KRI research associate, noted that women’s labour force participation varies significantly by age, education, and region. Participation rates are generally lower than men’s, with especially wide gaps in rural areas, while younger and more educated women participate at higher rates. She added that some disparities are influenced not solely by caregiving but also by the nature and availability of jobs in different regions, emphasizing the need for policies to address representation and participation alongside pay equity.

KRI recommends a multifaceted policy approach, including expanding access to affordable childcare and eldercare services, encouraging a more equitable division of caregiving duties through measures such as paternity leave, and promoting flexible work arrangements that do not hinder career advancement.

International Equal Pay Day serves to highlight persistent gender pay gaps worldwide, where women on average earn 20% less than men for comparable work. The data from Malaysia underscores the complexity of the issue and the necessity for broader systemic changes to achieve genuine wage equality.