Timor-Leste vs Malaysia

In Timor-Leste, the minimum wage is $115/mo. In Malaysia, it is RM8.72/hr ($2.20 USD). Timor-Leste has the higher rate by 5129% 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.

The average gross salary in Timor-Leste is $350/mo, compared to RM4,000/mo ($1,008.83 USD) in Malaysia. In USD terms, workers in Timor-Leste earn approximately 188% less. Average salaries reflect the full labor market, not just the minimum wage floor. The gap between Timor-Leste and Malaysia 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 Timor-Leste.

Malaysia has a longer standard work week at 45 hours, compared to 40 hours in Timor-Leste. Workers in Timor-Leste work 40 hours per week by law. Longer mandatory hours can offset a nominally higher wage; a worker in Timor-Leste 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.

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 8.8x that of Timor-Leste at $4,423. From Timor-Leste's perspective, this means goods and services are priced at a lower 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.