How Much Is Malaysia’s MP And Assemblyman’s Salary?

We see them all over the news and their names are familiar to most Malaysians. However, how much do we really know about our members of parliament (MPs) and assemblymen? More specifically, how much do they earn for a living? One would expect them to be paid a hefty salary for being responsible for deciding on our nation’s laws. 

Well, earlier this year, there was a huge commotion over the proposed abolishment of the pension scheme for new government hires. Following this, many quarters began calling for the elected representatives to be ineligible for the pension scheme.

An announcement by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi cautioned that the government would be spending RM140 billion on pensions by 2040 if new salary schemes aren’t introduced. This sparked a wave of heated discussions. To get a better look at the situation let’s see what MPs and assemblymen can earn.

How much does a minister and member of parliament earn?

As per the Members of Parliament (Remuneration) Act 1980, an MP’s monthly salary, including their allowances, could work out to an average of RM25,700. Unsurprisingly, this puts our MPs well above the T20 income group.

To be more exact, MPs are also allowed to claim various allowances or subsidies for specific purposes. One such example is their ability to receive RM400 per day for attending parliamentary sittings and a one-time allowance of RM1,000 every three years to purchase black-tie attire.

Here is a more detailed list of allowances that MPs can claim:

• Member of Parliament Salary
  • (Dewan Rakyat): RM16,000 per month
  • (Dewan Negara): RM11,000 per month
  • If MP is a minister: RM13,400 additional per month
• Parliamentary sitting attendance: RM400 per day
• Government agency meetings/ workshops attendance: RM300 per day
• Entertainment allowance: RM2,500 per month
• Special payment for non-administration MP: RM1,500 per month
• Fixed travel allowance: RM1,500 per month
• Fuel allowance: RM1,500 per month
• Toll allowance: RM300 per month
• Driver allowance: RM1,500 per month
• Handphone purchase: Up to RM2,000 every two years
• Phone bill allowance: RM900 per month
• Purchase of computer: Up to RM6,000
• Black-tie attire subsidy: RM1,000 every three years
• Ceremonial attire allowance: Up to RM1,500
• Warm clothing allowance
• Free vehicle license
• Official trips – Business class air travel
• Official trips – First-class rail travel
• Domestic duties exceeding 32km from home: Hotel allowance up to RM400 a night
• Daily stipend during business trips: Domestic – RM100 a night/ International – RM170 a night
• Food allowance when overseas: RM340 a night
• First-class single-room ward in government hospitals: Free

In addition to the above, MPs also qualify for pension after the completion of 36 months of reckonable service. This pension is claimable after the MP reaches the age of 50.

Which state pays their elected officials the most?

So, if an elected MP reportedly receives an average monthly salary of around RM16,000, what about at the state level?

Assemblymen from Sarawak recorded the highest monthly salaries at RM15,000, followed by Melaka at RM12,000, Selangor and Penang each at RM11,500, and Kedah, Terengganu, and Pahang each at RM11,000. On the other hand, Perak and Perlis registered amongst the lowest salaries paid to MPs, with some going as low as RM6,000, according to a local English daily. However, this is still a respectable amount considering the extra allowances that elected government officials enjoy.

It should also be noted that some MPs and assemblymen may also sit on the boards of certain government-linked companies. Some might even be the CEO of companies as well. This could potentially add an additional RM40,000 to RM50,000 a month to their pockets.

How much is the salary of a cabinet minister?

Now that we roughly know how much the average MP or state assemblyman earns through their salary and allowances, what about the big-name members of the administration? Surely, positions such as the Prime Minister will hold a much higher salary, right? According to the Members Of Parliament (Remuneration) Act 1980, the salary for members of administration are as follows:

Prime Minister: RM22,826.75
Deputy Prime Minister: RM18,168.15
Minister: RM14,907.20
Deputy Minister: RM10,847.65
Parliamentary Secretary: RM7,187.40

As mentioned earlier in the article, the current prime minister is not taking his salary, and his entire cabinet is taking a 20% pay cut.

We can see there definitely is a direct correlation between income and the positions of power that a Parliamentarian holds. However, the difference between them does not seem as massive as one might think. Without considering additional allowances, the monthly salary difference between the Prime Minister and a regular Minister would only amount to a difference of around RM8,000. 

It should be noted that if an MP holds two or more administrative offices within the government, the official would then only be entitled to the highest salary and allowances payable for the position that they hold. This means no double dipping.

Are our MPs really wealthy?

The average MP already receives a pretty decent salary every month. Add to that all the allowances that they are entitled to, and the additional board positions that they can take, then it is rather safe to assume that they can accumulate a fairly large sum of cash over their career. However, it is interesting to note that MP’s in Malaysia sit far less than their counterparts, for instance, US congress members sat for 174 days in 2018. UK MPs on the other hand sat for 213 days, during the 2022-2023 session.

The Dewan Rakyat, in contrast, only sat for around 74 days, including special sittings, during the year 2023, according to the parliamentary schedule.  

Based on data by the Department of Statistics Malaysia, the average income of a Malaysian household is around RM8,479 per month. This translates to around RM101,748 per year. Comparatively, an MP could be earning up to RM178,886.40 per year on just their monthly salary alone. Also keep in mind that the average Malaysian citizen would likely be working around 20 days a month, compared to members of parliament who only convene several times a year.

Overall, it does seem like our MPs and government officials do get a pretty cushy paycheck for the work they do. While many might be quick to start raising pitchforks, we should keep in mind that running a country is not exactly easy.

Despite this, some might argue that our officials may be getting too many perks for the amount of work they do. On the other hand, how is that much different from the CEOs and board directors of privately owned and public listed companies? What do you think our MPs should be earning?