Key Facts: Malaysia vs Bhutan Wages
- Malaysia Minimum Wage
- RM8.72/hr ($2.20 USD)
- Bhutan Minimum Wage
- Nu3,250/mo ($35.75 USD)
- Malaysia Avg. Gross Monthly Salary
- RM4,000 /mo ($1,008.83 USD)
- Bhutan Avg. Gross Monthly Salary
- Nu18,000 /mo ($198.02 USD)
- Data Sources
- Ministry of Human Resources (MOHR); Minimum Wages Order 2024 P.U.(A) 376 eff 2025-02-01; primary source gajiminimum.mohr.gov.my (2026-05-27), Ministry of Industry, Commerce and Employment — Royal Government of Bhutan / ILO (2026-02-25)
Malaysia
Bhutan
Updated 2026-05-27
The minimum wage in Malaysia is roughly 16 times lower than in Bhutan in USD terms, reflecting the gap between a upper-middle-income and a lower-middle-income economy. Average gross salaries diverge further: $1,009/mo in Malaysia versus $198/mo in Bhutan, a 5.1:1 ratio. GDP per capita (PPP) in Malaysia is 2.4x that of Bhutan, underscoring the structural economic divide.
Malaysia has higher GDP per capita ($38,779 vs $16,215). Malaysia's unemployment rate is 3.8% compared to Bhutan's 3.2%.
Detailed Comparison
| Metric | Malaysia | Bhutan |
|---|---|---|
| Minimum wage /hr | RM8.72 $2.20 | — |
| Minimum wage /day | — | Nu125 $1.38 |
| Minimum wage /mo | RM1,700 $428.75 | Nu3,250 $35.75 |
| Minimum wage /yr | RM20,400 $5,145.02 | Nu39,000 $429.04 |
| Avg. gross salary /mo | RM4,000 /mo $1,008.83 | Nu18,000 /mo $198.02 |
| Avg. net salary /mo | RM3,520 /mo $887.77 | Nu16,000 /mo $176.02 |
| Median individual income /yr | RM31,200 /yr $7,868.85 | Nu72,000 /yr $792.08 |
Percentage differences are based on USD equivalent values. Positive means Malaysia is higher.
Work Week
- Malaysia
-
45 hrs/wk standard
Max 45 hrs/wk
Overtime : 1.5x pay
Employment Act 1955 (amended 2022) reduced maximum working hours from 48 to 45 hours/week, effective 1 January 2023. Maximum 8 hours/day or 45 hours/week. Overtime at 1.5x on normal days, 2x on rest days, 3x on public holidays. Maximum overtime: 104 hours/month. Applies to employees earning up to MYR 4,000/mo (threshold raised from MYR 2,000 in 2023 amendments).
- Bhutan
-
40 hrs/wk standard
Max 48 hrs/wk
Overtime : 1.5x pay
Bhutan Labour and Employment Act 2007 sets a 40-hour standard workweek (8 hours/day, 5 days). Maximum including overtime is 48 hours. Overtime is paid at 1.5x the regular rate. The public sector follows a 5-day, 8-hour schedule.
What This Means for Workers
A minimum wage worker in Malaysia earns 1526% less per hour in USD terms than one in Bhutan. Standard work weeks differ: Malaysia mandates 45 hours while Bhutan mandates 40 hours. A minimum wage worker's weekly earnings in Malaysia are $99 vs $1,430 in Bhutan.
See this comparison from Bhutan's perspective: Bhutan vs Malaysia
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Frequently Asked Questions
Is the minimum wage higher in Malaysia or Bhutan?
In Malaysia, the minimum wage is RM8.72/hr ($2.20 USD). In Bhutan, it is Nu3,250/mo ($35.75 USD). Bhutan has the higher rate by 1526% in USD terms. That nominal gap does not account for local prices; see the purchasing power comparison below for a cost-of-living-adjusted view. Workers in Malaysia may retain a larger share of their earnings if prices there are lower.
How much more does the average worker earn in Malaysia compared to Bhutan?
The average gross salary in Malaysia is RM4,000/mo ($1,008.83 USD), compared to Nu18,000/mo ($198.02 USD) in Bhutan. In USD terms, workers in Malaysia earn approximately 409% more. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Malaysia and Bhutan is shaped by differences in industry composition, labor productivity, and the overall cost of living in each country. Workers in Malaysia earn more in nominal terms, though how far that income stretches depends on local prices in Bhutan.
How do work hours compare between Malaysia and Bhutan?
Malaysia has a longer standard work week at 45 hours, compared to 40 hours in Bhutan. Workers in Malaysia work 45 hours per week by law. Longer mandatory hours can offset a nominally higher wage; a worker in Bhutan working fewer hours may have comparable or better effective hourly earnings depending on the wage levels of each country. Total annual compensation depends on both the wage rate and the number of hours required.
What is the cost of living difference between Malaysia and Bhutan?
While direct cost of living data varies by source, GDP per capita (PPP) gives a useful proxy for overall economic level. Malaysia has the higher GDP per capita at $38,779, which is 2.4x that of Bhutan at $16,215. From Malaysia's perspective, this means goods and services are priced at a higher economic level. A higher GDP per capita generally correlates with higher wages, higher consumer prices, and greater availability of goods and services. Workers moving between these two countries should expect significant differences in rent, food, and transportation costs.