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NATIONAL
PRIVATE SECTOR
PUBLIC SECTOR
IN S ID E T H IS IS S U E : P=PRELIMINARY
Glossary 36
KEY HIGHLIGHTS
The National Wage Index (NWI) is a statistical indicator that measures the change in wages
and salaries of jobs and occupations in the Malaysian labour market over time.
The National Wage Index (NWI) shows that basic wages grew by 8.2% over eight (8)
quarters, i.e., between September 2016 and June 2018.
INQUIRIES
Basic wages grew faster in the private sector when compared to the public sector:
For further information about these 8.3% in the private sector compared to 7.8% in the public sector.
and related statistics, contact the By geographical region, basic wages rose 8.6% in Peninsular Malaysia, 6.6% in
Institute of Labour Market Sarawak and 5.4% in Sabah during this period.
Information and Analysis
(ILMIA) on 03 8318 2433.
www: ilmia.gov.my
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Introduction
The Eleventh Malaysia Plan, 2015-2020 (11MP) tasked The Institute of Labour Market Information and Analysis
(ILMIA), Ministry of Human Resources with the development of the National Wage Index (NWI). The 11MP stated that
the NWI … “will serve as a guide and benchmark for employers in determining the right wage level for employees that
is in accordance with their qualifications, skills, and productivity.”
Wage indexes, which measure the change of wages over time, are used to get a better understanding of the labour
market, and also of the economy. In the United States, wage indexes are used as indexation for retirement and
insurance benefits. In Australia, they are used for economic analysis and manpower policy related work. The linking of
wage index to a cost of living index can help provide a measure of the standard of living, via a change of real wages
over time. A wage index can also serve as an indicator to complement other key economic indicators that are useful
for providing information for wage negotiations between employers and employees.
The National Wage Index is a combined index of both the private and public sector wage and salary changes. For the
private sector, the wage index is constructed based on data collected through a sample survey whereas for the public
sector, the index is based on administrative data. For each sector, both basic wage/salary and total wage are analysed
and reported.
For the private sector NWI survey, a sample of establishments was first selected using a probability-based sampling
design. For each establishment, a sample of employees in specific jobs/occupations was then selected. Wage
information was collected from a panel of jobs at quarterly intervals, starting from September 2016. Wage surveys are
carried out for March, June, September and December of every year. Details of the private sector NWI component are
given below:
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2. Sampling
A sampling frame of establishments (known as the NWI Sampling Frame) was first created for the NWI survey from
the Establishment and Enterprise (EE) Frame, which is maintained by the Department of Statistics (DOSM). A two-
stage stratified sampling design was used in the NWI Surveys. First, a random sample of establishments was
selected from the NWI Sampling Frame. For the selected establishment, a sample of employees was selected to
provide wage data for the identified occupations in the Basket of Jobs (BoJ). These occupations represent about
80% of the total wages in the economy. The NWI surveys focussed on full-time employees. In order to “standardise”
the quality of jobs, wage data of employees with 3-5 years’ experience was collected. Firms that did not have
employees with this experience were requested to provide wage data of employees with the nearest years of
experience.
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6. Laspeyres Method
The Laspeyres method was used for computing the private sector wage index. This method uses a fixed number of
jobs/occupations and tracks their wage change over time.
A Laspeyres-type price index is expressed as a weighted arithmetic average of price relatives, that uses the expenditure
shares data for the period before the base period, as fixed weights. The expenditure shares are denoted by 𝑤𝑖𝒃.
𝒑𝒊𝒕
𝑳𝒂𝒔𝒑𝒆𝒚𝒓𝒆𝒔 𝒕𝒚𝒑𝒆 𝑰𝒏𝒅𝒆𝒙 (𝑰𝒊𝒕 ) = ∑ 𝒘𝒊𝒃 × 100
𝒑𝒊𝟎
where:
𝒑 = price of wage
𝒊 = item (or job)
𝒕 = current period
𝟎= base period
𝒃= period before base period
𝒘= expenditure shares
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Comparison across the five main economic sectors shows the highest increase in Basic Wages Index over eight
quarters was in the Services sector at 10.2% followed by the Mining sector at 8.2%. The Plantation sector registered
the lowest Basic Wage Index increase of 1.7% over the same period. Across major occupational groups, the NWI
rose between 0.6% and 13.8% over the eight quarters.
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Wage data was extracted for NWI1 (September 2016) through NWI8 (June 2018) to form a panel of employees,
similar to the method used for the private sector. Employees who had joined the service after September 2016
would not be in the panel. Employees who had left the service through retirements and resignations between
September 2016 and June 2018 were also not included in the panel.
A data cleaning exercise was carried out, and the quality of the dataset was assessed. An exercise to map the
government sector grades to 4-digit MASCO was carried out to enable comparability of the private and public sector
data. This enabled the finalising of the public sector wage index at occupation level as well as generating a
combined index for public and private sectors at detailed levels. In the meantime, the national wage index was
constructed based on MASCO 1-digit.
The (public sector) NWI was constructed based on panel data in Peninsular Malaysia, Sabah and Sarawak. Similar
to the private sector, the Laspeyres type method was used to compute the NWI (at 1-digit level). The creation of
the public sector database yielded 844,591 jobs for the panel, i.e. jobs that are available in all six quarters (NWI1-
NWI6). A total of 24,843 jobs and 24,434 jobs were dropped from the panel jobs and yielded a panel comprising
819,748 jobs and 795,314 jobs in NWI7 and NIW8 respectively.
The (public sector) Basic Wage Index and the Total Wage Index are presented by region and by occupational
category. The Basic Wage Index for the public sector increased 7.8% between September 2016 and June 2018. By
region, Sarawak was marginally higher at 8.3% compared to 7.7% for Peninsular Malaysia and 7.8% for Sabah. As
the salary increment of federal civil servants is the same across the board, the regional differences of the basic
wage index, although marginal, is due to the occupational composition of employees in their respective regions.
At the upper end of the occupational structure, wages grew generally more than at the lower end. The Basic Wage
Index for Managers and Professionals rose 7.8% and 8.1% while for elementary workers it rose only 6.8%. Unlike
the private sector, the public sector salaries are increased four times a year, roughly corresponding to the quarters.
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Moving Forward
The MOHR and ILMIA efforts have produced NWI estimates of the wage index based on two different data collection
methods: a survey of private sector establishments and use of administrative data for the public sector. Readers are
advised of the differences in NWI coverage for both the private and public sectors1.
The MOHR and ILMIA will continue to publish accurate and consistent results as the private sector, general public and
other users will rely on these results for key economic and business decisions. The true test of success for the NWI is
that it is used in key policy decisions of government, private sector and by the public.
In moving forward, these efforts will be sustained and continued. This publication shows the results of eight quarterly
surveys. The MOHR will publish the NWI every quarter and the next release will be in the second quarter of 2019.
1 For example, the private sector covers jobs identified in the BoJ which represents about 80% of the total wages whereas the public sector
covers all jobs. Similarly, in terms of geographical coverage, the private sector covers only the seven major urban areas in Sabah and Sarawak
while the public sector covers all geographical areas including smaller towns and rural areas. There is also a limitation in terms of the mapping
of public sector jobs to the MASCO (at the 4D level) which needs future work and refinement.
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Nation al Wag e Inde x (NWI)
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Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
5. Major Occupational Groups: National Basic Wage Index, all sectors
Managers Professionals Technicians & Clerical Service Skilled Craft & Plant & Elementary Malaysia
Associate Support and Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators,
Livestock & Workers &
Fishery Assemblers
Workers
National Basic Wage Index
NWI1 (Sep 2016) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
NWI2 (Dec 2016) 100.3 100.4 100.2 100.3 100.1 100.4 100.4 100.2 100.1 100.3
NWI3 (Mar 2017) 102.5 101.6 103.1 102.2 102.7 106.1 102.7 101.4 102.6 102.3
NWI4 (Jun 2017) 103.5 103.0 104.5 103.1 104.5 106.2 103.1 101.9 103.0 103.4
NWI5 (Sep 2017) 104.3 105.2 105.2 104.0 105.6 106.2 103.2 103.0 103.4 104.6
NWI6 (Dec 2017) 105.2 105.9 105.6 103.8 105.9 106.4 101.2 104.7 103.6 105.1
NWI7 (Mar 2018) 108.8 108.3 107.6 107.2 109.6 104.1 100.0 108.4 102.9 107.5
NWI8p (Jun 2018) 109.6 111.4 107.7 106.6 107.7 105.7 100.7 108.8 101.6 108.2
Percentage change in Index from base period (Sep 2016)
NWI2 (Dec 2016) 0.3 0.4 0.2 0.3 0.1 0.4 0.4 0.2 0.1 0.3
NWI3 (Mar 2017) 2.5 1.6 3.1 2.2 2.7 6.1 2.7 1.4 2.6 2.3
NWI4 (Jun 2017) 3.5 3.0 4.5 3.1 4.5 6.2 3.1 1.9 3.0 3.4
NWI5 (Sep 2017) 4.3 5.2 5.2 4.0 5.6 6.2 3.2 3.0 3.4 4.6
NWI6 (Dec 2017) 5.2 5.9 5.6 3.8 5.9 6.4 1.2 4.7 3.6 5.1
NWI7 (Mar 2018) 8.8 8.3 7.6 7.2 9.6 4.1 0.0 8.4 2.9 7.5
NWI8p (Jun 2018) 9.6 11.4 7.7 6.6 7.7 5.7 0.7 8.8 1.6 8.2
Percentage change in Index quarter-on-quarter
NWI2 (Dec 2016) 0.3 0.4 0.2 0.3 0.1 0.4 0.4 0.2 0.1 0.3
NWI3 (Mar 2017) 2.2 1.2 2.9 1.9 2.6 5.7 2.3 1.2 2.5 2.0
NWI4 (Jun 2017) 1.0 1.4 1.4 0.9 1.8 0.1 0.4 0.5 0.4 1.1
NWI5 (Sep 2017) 0.8 2.2 0.7 0.9 1.1 0.0 0.1 1.1 0.4 1.2
NWI6 (Dec 2017) 0.9 0.7 0.4 -0.2 0.3 0.2 -2.0 1.7 0.2 0.5
NWI7 (Mar 2018) 3.6 2.4 2.0 3.4 3.7 -2.3 -1.2 3.7 -0.7 2.4
NWI8p (Jun 2018) 0.8 3.1 0.1 -0.6 -2.0 1.5 0.7 0.4 -1.3 0.7
14 | P a g e
Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
Managers Professionals Technicians & Clerical Service Skilled Craft & Plant & Elementary Malaysia
Associate Support and Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators,
Livestock & Workers &
Fishery Assemblers
Workers
Percentage change in Index year-on-year
NWI1-NWI5
4.3 5.2 5.2 4.0 5.6 6.2 3.2 3.0 3.4 4.6
(Sep 2016 to Sep 2017)
NWI2-NWI6
4.9 5.5 5.4 3.5 5.8 6.0 0.8 4.5 3.5 4.8
(Dec 2016 to Dec 2017)
NWI3-NWI7
6.1 6.6 4.4 4.9 6.7 -1.8 -2.6 6.9 0.2 5.1
(Mar 2017 to Mar 2018)
NWI4-NWI8
5.9 8.1 3.0 3.4 3.0 -0.5 -2.4 6.8 -1.4 4.6
(Jun 2017 to Jun 2018)
Note: p preliminary
15 | P a g e
Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
6. Major Occupational Groups: Basic Wage Index, private sector
Managers Professionals Technicians & Clerical Service Skilled Craft & Plant & Elementary Malaysia*
Associate Support and Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators, &
Livestock & Workers Assemblers
Fishery
Workers
Basic Wage Index
NWI1 (Sep 2016) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
NWI2 (Dec 2016) 100.3 100.4 100.2 100.3 100.1 100.4 100.4 100.2 100.1 100.3
NWI3 (Mar 2017) 102.7 102.4 103.7 102.4 102.9 106.3 102.7 101.4 102.7 102.7
NWI4 (Jun 2017) 103.6 103.2 105.1 103.2 104.7 106.3 103.2 101.9 103.1 103.6
NWI5 (Sep 2017) 104.2 105.5 105.4 104.0 105.7 106.3 103.2 102.9 103.4 104.6
NWI6 (Dec 2017) 105.2 106.0 105.8 103.7 105.9 106.4 101.2 104.7 103.6 105.0
NWI7 (Mar 2018) 109.0 110.1 108.1 107.4 110.0 104.1 100.0 108.5 102.8 108.0
NWI8p (Jun 2018) 109.7 113.8 107.8 106.6 107.7 105.6 100.6 108.9 101.4 108.3
Percentage change in Index from base period (Sep 2016)
NWI2 (Dec 2016) 0.3 0.4 0.2 0.3 0.1 0.4 0.4 0.2 0.1 0.3
NWI3 (Mar 2017) 2.7 2.4 3.7 2.4 2.9 6.3 2.7 1.4 2.7 2.7
NWI4 (Jun 2017) 3.6 3.2 5.1 3.2 4.7 6.3 3.2 1.9 3.1 3.6
NWI5 (Sep 2017) 4.2 5.5 5.4 4.0 5.7 6.3 3.2 2.9 3.4 4.6
NWI6 (Dec 2017) 5.2 6.0 5.8 3.7 5.9 6.4 1.2 4.7 3.6 5.0
NWI7 (Mar 2018) 9.0 10.1 8.1 7.4 10.0 4.1 0.0 8.5 2.8 8.0
NWI8p (Jun 2018) 9.7 13.8 7.8 6.6 7.7 5.6 0.6 8.9 1.4 8.3
Percentage change in Index quarter-on-quarter
NWI2 (Dec 2016) 0.3 0.4 0.2 0.3 0.1 0.4 0.4 0.2 0.1 0.3
NWI3 (Mar 2017) 2.4 2.0 3.5 2.1 2.8 5.9 2.3 1.2 2.6 2.4
NWI4 (Jun 2017) 0.9 0.8 1.4 0.8 1.8 0.0 0.5 0.5 0.4 0.9
NWI5 (Sep 2017) 0.6 2.3 0.3 0.8 1.0 0.0 0.0 1.0 0.3 1.0
NWI6 (Dec 2017) 1.0 0.5 0.4 -0.3 0.2 0.1 -2.0 1.8 0.2 0.4
NWI7 (Mar 2018) 3.8 4.1 2.3 3.7 4.1 -2.3 -1.2 3.8 -0.8 3.0
NWI8p (Jun 2018) 0.7 3.7 -0.3 -0.9 -2.3 1.5 0.7 0.4 -1.4 0.3
16 | P a g e
Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
Managers Professionals Technicians & Clerical Service Skilled Craft & Plant & Elementary Malaysia*
Associate Support and Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators, &
Livestock & Workers Assemblers
Fishery
Workers
Percentage change in Index year-on-year
NWI1-NWI5
4.2 5.5 5.4 4.0 5.7 6.3 3.2 2.9 3.4 4.6
(Sep 2016 to Sep 2017)
NWI2-NWI6
4.9 5.6 5.6 3.4 5.8 6.0 0.8 4.5 3.5 4.7
(Dec 2016 to Dec 2017)
NWI3-NWI7
6.1 7.5 4.2 4.9 6.9 -2.1 -2.7 7.0 0.1 5.1
(Mar 2017 to Mar 2018)
NWI4-NWI8
5.9 10.3 2.5 3.3 2.9 -0.7 -2.5 6.8 -1.6 4.5
(Jun 2017 to Jun 2018)
Note: p preliminary
*Includes major urban areas Sabah and Sarawak only
17 | P a g e
Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
7. Major Occupational Groups: Basic Wage Index, public sector
Managers Professionals Technicians & Clerical Service and Skilled Craft & Plant & Elementary Malaysia
Associate Support Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators, &
Livestock & Workers Assemblers
Fishery
Workers
Basic Wage Index
NWI1 (Sep 2016) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
NWI2 (Dec 2016) 100.4 100.3 100.2 100.1 100.2 100.2 100.0 100.1 100.1 100.3
NWI3 (Mar 2017) 100.8 100.5 100.5 100.4 100.4 100.8 100.1 100.4 100.3 100.5
NWI4 (Jun 2017) 102.7 102.7 102.4 102.1 102.3 103.1 102.3 102.4 102.1 102.6
NWI5 (Sep 2017) 104.4 104.8 104.1 104.1 104.1 104.3 103.7 103.7 103.8 104.6
NWI6 (Dec 2017) 105.7 105.7 105.2 105.1 105.2 105.7 104.7 104.7 104.8 105.5
NWI7 (Mar 2018) 106.0 105.8 105.5 105.3 105.4 105.8 104.9 105.0 105.0 105.7
NWI8p (Jun 2018) 107.8 108.1 107.2 107.0 107.4 108.3 106.9 106.9 106.8 107.8
Percentage change in Index from base period (Sep 2016)
NWI2 (Dec 2016) 0.4 0.3 0.2 0.1 0.2 0.2 0.0 0.1 0.1 0.3
NWI3 (Mar 2017) 0.8 0.5 0.5 0.4 0.4 0.8 0.1 0.4 0.3 0.5
NWI4 (Jun 2017) 2.7 2.7 2.4 2.1 2.3 3.1 2.3 2.4 2.1 2.6
NWI5 (Sep 2017) 4.4 4.8 4.1 4.1 4.1 4.3 3.7 3.7 3.8 4.6
NWI6 (Dec 2017) 5.7 5.7 5.2 5.1 5.2 5.7 4.7 4.7 4.8 5.5
NWI7 (Mar 2018) 6.0 5.8 5.5 5.3 5.4 5.8 4.9 5.0 5.0 5.7
NWI8p (Jun 2018) 7.8 8.1 7.2 7.0 7.4 8.3 6.9 6.9 6.8 7.8
Percentage change in Index quarter-on-quarter
NWI2 (Dec 2016) 0.4 0.3 0.2 0.1 0.2 0.2 0.0 0.1 0.1 0.3
NWI3 (Mar 2017) 0.4 0.2 0.3 0.3 0.2 0.6 0.1 0.3 0.2 0.2
NWI4 (Jun 2017) 1.9 2.2 1.9 1.7 1.9 2.3 2.2 2.0 1.8 2.1
NWI5 (Sep 2017) 1.7 2.1 1.7 2.0 1.8 1.2 1.4 1.3 1.7 2.0
NWI6 (Dec 2017) 1.3 0.9 1.1 1.0 1.1 1.4 1.0 1.0 1.0 0.9
NWI7 (Mar 2018) 0.3 0.1 0.3 0.2 0.2 0.1 0.2 0.3 0.2 0.2
NWI8p (Jun 2018) 1.8 2.2 1.8 1.7 2.0 2.5 2.0 1.9 1.8 2.1
18 | P a g e
Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
Managers Professionals Technicians & Clerical Service and Skilled Craft & Plant & Elementary Malaysia
Associate Support Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators, &
Livestock & Workers Assemblers
Fishery
Workers
Percentage change in Index year-on-year
NWI1-NWI5
4.4 4.8 4.1 4.1 4.1 4.3 3.7 3.7 3.8 4.6
(Sep 2016 to Sep 2017)
NWI2-NWI6
5.3 5.4 5.0 5.0 5.0 5.5 4.7 4.6 4.7 5.2
(Dec 2016 to Dec 2017)
NWI3-NWI7
5.2 5.3 4.9 4.9 5.0 5.0 4.8 4.6 4.7 5.2
(Mar 2017 to Mar 2018)
NWI4-NWI8
5.0 5.2 4.7 4.8 5.0 5.0 4.5 4.4 4.6 5.1
(Jun 2017 to Jun 2018)
Note: p preliminary
19 | P a g e
Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
NWI1 (Sep 2016) 100.0 100.0 100.0 100.0 100.0 100.0 100.0
NWI2 (Dec 2016) 100.2 100.9 100.2 100.2 100.3 100.3 100.3
NWI3 (Mar 2017) 101.7 103.7 102.3 103.9 102.7 100.5 102.3
NWI4 (Jun 2017) 101.7 103.8 103.1 103.9 104.0 102.6 103.4
NWI5 (Sep 2017) 101.7 104.8 103.9 104.1 105.2 104.6 104.6
NWI6 (Dec 2017) 102.5 105.8 104.6 103.8 105.6 105.5 105.1
NWI7 (Mar 2018) 101.3 107.1 106.8 104.9 109.5 105.7 107.5
NWI8p (Jun 2018) 101.7 108.2 107.8 101.7 110.2 107.8 108.2
Percentage change in Index from base period (Sep 2016)
NWI2 (Dec 2016) 0.2 0.9 0.2 0.2 0.3 0.3 0.3
NWI3 (Mar 2017) 1.7 3.7 2.3 3.9 2.7 0.5 2.3
NWI4 (Jun 2017) 1.7 3.8 3.1 3.9 4.0 2.6 3.4
NWI5 (Sep 2017) 1.7 4.8 3.9 4.1 5.2 4.6 4.6
NWI6 (Dec 2017) 2.5 5.8 4.6 3.8 5.6 5.5 5.1
NWI7 (Mar 2018) 1.3 7.1 6.8 4.9 9.5 5.7 7.5
NWI8p (Jun 2018) 1.7 8.2 7.8 1.7 10.2 7.8 8.2
Percentage change in Index quarter-on-quarter
NWI2 (Dec 2016) 0.2 0.9 0.2 0.2 0.3 0.3 0.3
NWI3 (Mar 2017) 1.5 2.8 2.1 3.7 2.4 0.2 2.0
NWI4 (Jun 2017) 0.0 0.1 0.8 0.0 1.3 2.1 1.1
NWI5 (Sep 2017) 0.0 1.0 0.8 0.2 1.2 2.0 1.2
NWI6 (Dec 2017) 0.8 1.0 0.7 -0.3 0.4 0.9 0.5
NWI7 (Mar 2018) -1.2 1.3 2.2 1.1 3.9 0.2 2.4
NWI8p (Jun 2018) 0.4 1.1 0.9 -3.2 0.7 2.1 0.7
Percentage change in Index quarter-on-quarter
NWI1-NWI5
1.7 4.8 3.9 4.1 5.2 4.6 4.6
(Sep 2016 to Sep 2017)
NWI2-NWI6
2.3 4.9 4.4 3.6 5.3 5.2 4.8
(Dec 2016 to Dec 2017)
NWI3-NWI7
-0.4 3.3 4.4 0.9 6.6 5.2 5.1
(Mar 2017 to Mar 2018)
NWI4-NWI8
0.0 4.2 4.5 -2.2 6.0 5.1 4.6
(Jun 2017 to Jun 2018)
Note: p preliminary
20 | P a g e
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21 | P a g e
Nation al Wag e Inde x (NWI)
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Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
14. Major Occupational Groups: National Total Wage Index, all sectors
Managers Professionals Technicians & Clerical Service and Skilled Craft & Plant & Elementary Malaysia
Associate Support Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators, &
Livestock & Workers Assemblers
Fishery
Workers
National Total Wage Index
NWI1 (Sep 2016) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
NWI2 (Dec 2016) 102.6 101.6 102.4 102.3 100.7 101.2 99.5 100.2 101.0 101.6
NWI3 (Mar 2017) 104.2 104.4 105.3 104.0 107.4 107.5 97.7 102.6 101.1 104.2
NWI4 (Jun 2017) 105.1 107.5 107.5 104.7 111.0 107.5 103.5 102.5 101.3 106.2
NWI5 (Sep 2017) 105.8 108.7 108.2 105.6 108.4 107.6 100.8 106.5 103.3 107.1
NWI6 (Dec 2017) 106.3 111.4 108.3 106.0 109.4 109.6 96.4 107.0 97.8 107.6
NWI7 (Mar 2018) 109.4 111.1 108.6 107.4 110.0 107.7 99.6 110.3 102.3 108.8
NWI8p (Jun 2018) 110.4 111.4 109.1 106.7 108.5 116.0 102.3 110.4 104.3 109.2
Percentage change in Index from base period (Sep 2016)
NWI2 (Dec 2016) 2.6 1.6 2.4 2.3 0.7 1.2 -0.5 0.2 1.0 1.6
NWI3 (Mar 2017) 4.2 4.4 5.3 4.0 7.4 7.5 -2.3 2.6 1.1 4.2
NWI4 (Jun 2017) 5.1 7.5 7.5 4.7 11.0 7.5 3.5 2.5 1.3 6.2
NWI5 (Sep 2017) 5.8 8.7 8.2 5.6 8.4 7.6 0.8 6.5 3.3 7.1
NWI6 (Dec 2017) 6.3 11.4 8.3 6.0 9.4 9.6 -3.6 7.0 -2.2 7.6
NWI7 (Mar 2018) 9.4 11.1 8.6 7.4 10.0 7.7 -0.4 10.3 2.3 8.8
NWI8p (Jun 2018) 10.4 11.4 9.1 6.7 8.5 16.0 2.3 10.4 4.3 9.2
Percentage change in Index quarter-on-quarter
NWI2 (Dec 2016) 2.6 1.6 2.4 2.3 0.7 1.2 -0.5 0.2 1.0 1.6
NWI3 (Mar 2017) 1.6 2.8 2.9 1.7 6.7 6.3 -1.8 2.4 0.1 2.6
NWI4 (Jun 2017) 0.9 3.1 2.2 0.7 3.6 0.0 5.8 -0.1 0.2 2.0
NWI5 (Sep 2017) 0.7 1.2 0.7 0.9 -2.6 0.1 -2.7 4.0 2.0 0.9
NWI6 (Dec 2017) 0.5 2.7 0.1 0.4 1.0 2.0 -4.4 0.5 -5.5 0.5
NWI7 (Mar 2018) 3.1 -0.3 0.3 1.4 0.6 -1.9 3.2 3.3 4.5 1.2
NWI8p (Jun 2018) 1.0 0.3 0.5 -0.8 -1.5 8.2 2.7 0.1 2.1 0.4
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Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
Managers Professionals Technicians & Clerical Service and Skilled Craft & Plant & Elementary Malaysia
Associate Support Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators, &
Livestock & Workers Assemblers
Fishery
Workers
Percentage change in Index year-on-year
NWI1-NWI5
5.8 8.7 8.2 5.6 8.4 7.6 0.8 6.5 3.3 7.1
(Sep 2016 to Sep 2017)
NWI2-NWI6
3.6 9.6 5.8 3.6 8.6 8.3 -3.1 6.8 -3.2 5.9
(Dec 2016 to Dec 2017)
NWI3-NWI7
5.0 6.4 3.2 3.3 2.4 0.2 2.0 7.5 1.2 4.4
(Mar 2017 to Mar 2018)
NWI4-NWI8
5.0 3.6 1.5 1.9 -2.2 7.9 -1.2 7.7 3.0 2.8
(Jun 2017 to Jun 2018)
Note: p preliminary
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Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
15. Major Occupational Groups: Total Wage Index, private sector
Managers Professionals Technicians Clerical Service Skilled Craft & Plant & Elementary Malaysia*
& Associate Support and Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators, &
Livestock & Workers Assemblers
Fishery
Workers
Total Wage Index
NWI1 (Sep 2016) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
NWI2 (Dec 2016) 102.8 102.6 102.9 102.6 100.7 101.2 99.5 100.2 101.0 101.9
NWI3 (Mar 2017) 104.5 106.8 106.2 104.4 108.0 107.6 97.6 102.6 101.1 104.9
NWI4 (Jun 2017) 105.3 110.8 108.6 104.9 111.8 107.6 103.5 102.5 101.2 107.0
NWI5 (Sep 2017) 105.9 111.6 109.1 105.7 108.8 107.6 100.8 106.6 103.3 107.6
NWI6 (Dec 2017) 106.3 115.9 109.0 106.1 109.8 109.7 96.3 107.0 97.6 108.0
NWI7 (Mar 2018) 109.8 116.2 110.0 108.1 110.8 107.9 99.6 110.5 102.3 110.0
NWI8p (Jun 2018) 110.9 116.8 110.6 107.3 109.2 116.3 102.3 110.6 104.4 110.5
Percentage change in Index from base period (Sep 2016)
NWI2 (Dec 2016) 2.8 2.6 2.9 2.6 0.7 1.2 -0.5 0.2 1.0 1.9
NWI3 (Mar 2017) 4.5 6.8 6.2 4.4 8.0 7.6 -2.4 2.6 1.1 4.9
NWI4 (Jun 2017) 5.3 10.8 8.6 4.9 11.8 7.6 3.5 2.5 1.2 7.0
NWI5 (Sep 2017) 5.9 11.6 9.1 5.7 8.8 7.6 0.8 6.6 3.3 7.6
NWI6 (Dec 2017) 6.3 15.9 9.0 6.1 9.8 9.7 -3.7 7.0 -2.4 8.0
NWI7 (Mar 2018) 9.8 16.2 10.0 8.1 10.8 7.9 -0.4 10.5 2.3 10.0
NWI8p (Jun 2018) 10.9 16.8 10.6 7.3 9.2 16.3 2.3 10.6 4.4 10.5
Percentage change in Index quarter-on-quarter
NWI2 (Dec 2016) 2.8 2.6 2.9 2.6 0.7 1.2 -0.5 0.2 1.0 1.9
NWI3 (Mar 2017) 1.7 4.2 3.3 1.8 7.3 6.4 -1.9 2.4 0.1 3.0
NWI4 (Jun 2017) 0.8 4.0 2.4 0.5 3.8 0.0 5.9 -0.1 0.1 2.1
NWI5 (Sep 2017) 0.6 0.8 0.5 0.8 -3.0 0.0 -2.7 4.1 2.1 0.6
NWI6 (Dec 2017) 0.4 4.3 -0.1 0.4 1.0 2.1 -4.5 0.4 -5.7 0.4
NWI7 (Mar 2018) 3.5 0.3 1.0 2.0 1.0 -1.8 3.3 3.5 4.7 2.0
NWI8p (Jun 2018) 1.1 0.6 0.6 -0.9 -1.6 8.4 2.7 0.1 2.1 0.4
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Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
Managers Professionals Technicians Clerical Service Skilled Craft & Plant & Elementary Malaysia*
& Associate Support and Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators, &
Livestock & Workers Assemblers
Fishery
Workers
Percentage change in Index year-on-year
NWI1-NWI5
5.9 11.6 9.1 5.7 8.8 7.6 0.8 6.6 3.3 7.6
(Sep 2016 to Sep 2017)
NWI2-NWI6
3.4 13.0 5.9 3.4 9.0 8.4 -3.2 6.8 -3.4 6.0
(Dec 2016 to Dec 2017)
NWI3-NWI7
5.1 8.8 3.6 3.6 2.6 0.3 2.1 7.7 1.2 4.9
(Mar 2017 to Mar 2018)
NWI4-NWI8
5.3 5.4 1.8 2.3 -2.4 8.1 -1.2 7.9 3.2 3.2
(Jun 2017 to Jun 2018)
Note: p preliminary
*Includes major urban areas Sabah and Sarawak only
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Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
16. Major Occupational Groups: Total Wage Index, public sector
Managers Professionals Technicians Clerical Service and Skilled Craft & Plant & Elementary Malaysia
& Associate Support Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators, &
Livestock & Workers Assemblers
Fishery
Workers
Total Wage Index
NWI1 (Sep 2016) 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
NWI2 (Dec 2016) 100.5 100.3 100.2 100.1 100.1 100.2 100.0 100.1 100.0 100.3
NWI3 (Mar 2017) 101.3 101.3 101.5 101.7 101.8 102.1 101.4 102.0 101.9 101.4
NWI4 (Jun 2017) 102.9 103.2 103.0 103.0 103.2 103.9 103.0 103.4 103.2 103.2
NWI5 (Sep 2017) 105.4 105.1 104.4 104.5 104.5 104.8 104.1 104.3 104.4 104.9
NWI6 (Dec 2017) 106.8 105.8 105.3 105.2 105.4 105.9 104.8 105.1 105.1 105.7
NWI7 (Mar 2018) 105.1 105.0 104.1 103.7 103.7 104.1 103.4 103.3 103.3 104.6
NWI8p (Jun 2018) 109.2 106.8 105.4 104.9 105.1 106.0 104.9 104.7 104.6 106.4
Percentage change in Index from base period (Sep 2016)
NWI2 (Dec 2016) 0.5 0.3 0.2 0.1 0.1 0.2 0.0 0.1 0.0 0.3
NWI3 (Mar 2017) 1.3 1.3 1.5 1.7 1.8 2.1 1.4 2.0 1.9 1.4
NWI4 (Jun 2017) 2.9 3.2 3.0 3.0 3.2 3.9 3.0 3.4 3.2 3.2
NWI5 (Sep 2017) 5.4 5.1 4.4 4.5 4.5 4.8 4.1 4.3 4.4 4.9
NWI6 (Dec 2017) 6.8 5.8 5.3 5.2 5.4 5.9 4.8 5.1 5.1 5.7
NWI7 (Mar 2018) 5.1 5.0 4.1 3.7 3.7 4.1 3.4 3.3 3.3 4.6
NWI8p (Jun 2018) 9.2 6.8 5.4 4.9 5.1 6.0 4.9 4.7 4.6 6.4
Percentage change in Index quarter-on-quarter
NWI2 (Dec 2016) 0.5 0.3 0.2 0.1 0.1 0.2 0.0 0.1 0.0 0.3
NWI3 (Mar 2017) 0.8 1.0 1.3 1.6 1.7 1.9 1.4 1.9 1.9 1.1
NWI4 (Jun 2017) 1.6 1.9 1.5 1.3 1.4 1.8 1.6 1.4 1.3 1.8
NWI5 (Sep 2017) 2.5 1.9 1.4 1.5 1.3 0.9 1.1 0.9 1.2 1.7
NWI6 (Dec 2017) 1.4 0.7 0.9 0.7 0.9 1.1 0.7 0.8 0.7 0.8
NWI7 (Mar 2018) -1.7 -0.8 -1.2 -1.5 -1.7 -1.8 -1.4 -1.8 -1.8 -1.1
NWI8p (Jun 2018) 4.1 1.8 1.3 1.2 1.4 1.9 1.5 1.4 1.3 1.7
30 | P a g e
Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
Managers Professionals Technicians Clerical Service and Skilled Craft & Plant & Elementary Malaysia
& Associate Support Sales Agricultural, Related Machine Occupations
Professionals Workers Workers Forestry, Trades Operators, &
Livestock & Workers Assemblers
Fishery
Workers
Percentage change in Index year-on-year
NWI1-NWI5
5.4 5.1 4.4 4.5 4.5 4.8 4.1 4.3 4.4 4.9
(Sep 2016 to Sep 2017)
NWI2-NWI6
6.3 5.5 5.1 5.1 5.3 5.7 4.8 5.0 5.1 5.4
(Dec 2016 to Dec 2017)
NWI3-NWI7
3.8 3.6 2.6 2.0 1.9 2.0 2.0 1.3 1.4 3.2
(Mar 2017 to Mar 2018)
NWI4-NWI8
6.1 3.5 2.4 1.9 1.8 2.0 1.9 1.2 1.4 3.1
(Jun 2017 to Jun 2018)
Note: p preliminary
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Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
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Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
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Nation al Wag e Inde x (NWI)
Quarters: Se ptemb er 201 6 to Jun e 20 18
Explanatory Notes
Introduction 1 This publication contains indexes measuring changes in wages and salaries of jobs and
occupations in the Malaysian labour market over eight (8) quarters.
2 It serves as a guide for various players and stakeholders such as employers,
recruitment agencies, and human resource practitioners in determining appropriate
pay structures and levels for specific jobs.
3 The concept of the NWI is similar to that of other price indexes such as the Consumer
Price Index (CPI) produced by the Department of Statistics Malaysia (DOSM), using
methods similar to those recommended by International Agencies and adopted by
other countries.
Current Published Indexes 4 Two NWI are constructed and published. These indexes were first compiled for the
September quarter 2016, and cover:
Basic Wage Index
Total Wage Index
Design of the Indexes 5 The NWI for the private sector was based on salary data from the quarterly surveys of
private sector establishments in all three regions in Malaysia, which is, Peninsular
Malaysia, Sabah and Sarawak. Wages and salaries information of the employees are
based on a basket of jobs (BoJ) that contribute to about 80% of the total salaries and
wages in the country.
6 Private sector covers jobs identified in the BoJ which represents about 80% of the total
wages whereas the public sector covers all jobs.
7 The survey method used in the NWI surveys is a panel study or longitudinal study, that
is, data for the first and subsequent surveys were collected from the same sample of
establishments and occupations over time.
8 The NWI Survey (private sector) has an economy-wide coverage with a few exclusions
for maintaining the efficiency of data collection. Only establishments with 10
employees and above were surveyed. For Sabah and Sarawak, only the major urban
centres of Kota Kinabalu, Tawau, Sandakan, Kuching, Bintulu, Sibu and Miri were
included. The informal sector, self-employed, micro-establishments, security forces,
extra-territorial bodies, and rural areas in Sabah and Sarawak were not covered.
Wage Index 9 The Laspeyres price index technique was adopted for computing the NWI. A Laspeyres-
type price index is expressed as a weighted arithmetic average of price relatives, that
uses the expenditure shares data for the period before the base period, as fixed
weights.
10 Wage index is the change in the price of labour or skill with a reference baseline
period. The index tracks the changes in salaries and wages of occupations that are part
of the Basket of Jobs.
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Quarters: Se ptemb er 201 6 to Jun e 20 18
Wage Index 11 Two wage indexes (basic and total), as well as three types of sub- indexes
(occupational group, major sector and regional) have been developed:
NWI for basic wages, Malaysia
NWI for basic wages by major occupation group (MASCO 1 digit);
NWI of basic wages by major sectors (five major sectors);
NWI of basic wages by region (PM, Sabah & Sarawak);
NWI for total wages, Malaysia
NWI for total wages by major occupation group (MASCO 1 digit);
NWI of total wages by major sectors (five major sectors); and
NWI of total wages by region (PM, Sabah & Sarawak).
Scope and Coverage 12 The Index is formulated at the national level (Malaysia) and disaggregated to three
regions, i.e. Peninsular Malaysia, Sabah and Sarawak. The Index is also disaggregated
to industry and occupational levels.
13 The National Wage Index (NWI) encompasses economic sectors up to 2-digit level
using the Malaysian Standard Industry Classification (MSIC) 2008, and occupations
(Private and Public) at the 4-digit level of the Malaysian Standard Classification of
Occupation (MASCO) 2013.
14 The Index covers both the private and public sectors.
15 The NWI surveys focussed on full-time employees.
Data Collection 16 The private sector wages data is collected via a survey of establishments. A two-stage
stratified sampling design was used in the NWI Surveys. First, a random sample of
establishments was selected from the NWI Sampling Frame. For each establishment,
the required wage data was collected from a random sample of employees in specific
occupations /jobs identified in a pre-determined Basket of Jobs (BoJ). In order to
“standardise” the quality of jobs, wage data of employees with 3-5 years’ experience
was collected. Establishments that did not have employees with this experience were
requested to provide wage data of employees with the nearest years of experience.
17 Data collection for NWI surveys (private sector) used three approaches, that is, online,
telephone and face-to-face interviews.
18 Public sector salaries are defined in the General Orders and other government salary
guidelines, and the data is provided administratively.
Index Reference Period 19 The NWI is published four times a year, that is, for the reference months of March,
June, September and December. September 2016 is the base period of the NWI (index
reference period of Sept 2016 = 100.0).
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Quarters: Se ptemb er 201 6 to Jun e 20 18
Glossary
Occupation The concept of occupation refers to a distinct professional vocation and encompasses a
group of related jobs. The Malaysian Classification of Occupations (MASCO) has defined the
types of occupations in Malaysia.
Job A job is defined as work that is agreed upon between an employer and an employee. It
refers to a position within a firm, which takes the form of a job title. Jobs could also refer to
the number of persons/bodies within a particular occupation.
Index number Measures the ratio of the price of labour between the commencement of the index series
and a later period.
Index reference period The period for which an index series is given the value of 100.0. The current index
reference period for the NWI is September 2016 to June 2018.
Industry Classified according to the Malaysian Standard Industry Classification (MSIC) 2008.
Basic wage/salary In the Malaysian labour market, the wage rate extensively used by the private sector is that
of the basic wage. The appropriate definition of “wage” for the NWI is Basic Wage/Salary
paid by the employer to his employee for the job done.
Total wage index Total Wage includes other pay components in addition to basic wage that is, fixed
allowances, bonus, incentives and overtime payments.
National Wage Index The National Wage Index (NWI) is a statistical indicator to measure changes in wages and
salaries of jobs and occupations in the Malaysian labour market over time. It serves as a
guide for various players and stakeholders such as employers, recruitment agencies, and
human resource practitioners in determining appropriate pay structures and levels for
specific jobs. It would also serve as a guide for government planners and administrators in
formulating policies and implementing programmes relating to human resources. Job
seekers could use it to know more about wage trends.
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www.ilmia.gov.my
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