INTERACTIVE: Bridge income gap beyond hiring

At the helm: Hyatt Regency Events Director Wendy Soo (right) overseeing operations at the hotel. In conjunction with the UN’s International Equal Pay Day on Sept 18, experts weigh in on Malaysia’s gender pay gap and what needs to be done to achieve equal pay for work of equal value. — FAIHAN GHANI/The Star

PETALING JAYA: Men continue to earn more than women in the formal sector despite efforts to close the gap, with researchers warning that recruiting more women into the workforce alone will not solve the problem.

In conjunction with the United Nations International Equal Pay Day today, they said policies should look beyond getting women into jobs, calling for better access to childcare, more equal sharing of care respon­sibilities and greater pay trans­parency.

According to the Statistics Department, male formal sector employees earn a median monthly wage of RM3,064 in March 2026, compared with RM3,000 for women.

“An analysis of wage disparities by gender indicates that male formal employees consistently received higher median monthly wages than female,” the department said in its Employee Wages Statistics (Formal Sector) first quarter 2026 report.

Khazanah Research Institute (KRI) researchers said the persistent gap showed that policies needed to look beyond getting women into employment and address the quality of jobs available to them, pay progression, flexibility and the career penalties associated with caregiving.

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KRI research associate Adam Manaf Mohamed Firouz said when viewed by age, the gender pay gap pointed to possible care-related lifecycle effects.

“In 2024, there was no gap among workers aged 25 to 29, but it widened to 5.2% among those aged 30 to 34 and 10.8% among those aged 35 to 39, when care responsibilities may become more significant.

“The gap narrowed among workers aged 40 to 49, before widening substantially among older workers, reaching 12.8% among those aged 55 to 59 and 31.7% among those aged 60 to 64.”

He said the pattern also reflec­ted differences between generations, with younger cohorts experiencing different labour-market condi­tions from older workers.

“A major structural barrier remains women’s dispropor­tio­nate responsibility for care work,” he said.

Adam Manaf noted that among women outside the labour force, 67.9% cited family responsibilities as the main reason in the latest data, slightly higher than the 67.1% recorded in 2010.

“This suggests that existing policies have not sufficiently changed the underlying trade-offs women face between paid work and caregiving.

“Previous KRI research finds that women are paid 17.8% less than men for the same job,” he said.

In terms of women’s labour participation, another research associate, Wan Amirah Wan Usamah, said it can vary greatly based on age, location and education level.

She noted that women’s labour-force participation remains below men’s, with the gap particularly pronounced in rural areas, while participation is higher among younger and more highly educated women.

“Some of these outcomes are not explained by care constraints but can also be driven by the composition and availability of jobs in their region.

“The discussion surrounding the gender pay gap should therefore be aligned on our policies surrounding women labour participation and repre­sen­tation,” she said.

Adam said policies should focus on expanding access to affordable childcare and eldercare, promo­ting a more equal sharing of care responsibilities through measures such as paternity leave, and ensu­ring flexible work arrangements do not hinder career progression.

The International Equal Pay Day, observed globally on Sept 18, raises awareness on achieving equal pay for work of equal value. 

It highlights the persistent global gender pay gap, where women earn 20% less than men on average.