PETALING JAYA: The Women’s Aid Organisation (WAO) has called for greater salary transparency and stronger enforcement of gender-equitable compensation practices to address the wage gap between men and women in Malaysia, which exists despite women being the top scorers in universities.
Its acting executive director Nazreen Nizam was commenting on Women, Family and Community Development Minister Datuk Seri Nancy Shukri’s statement that the Graduate Statistics 2023 report, released by the Statistics Department, revealed that female graduates earn an average of RM900 less than their male counterparts, despite having comparable academic qualifications.
Nazreen said the lack of specific regulations mandating equal pay for work of equal value across genders in Malaysia has caused wage disparities to go unnoticed and unaddressed in various sectors.
“There are no specific legislations that mandate equal pay for work of equal value.
“To achieve pay equity, Malaysia must implement laws to prevent wage discrimination and enforce remedies and penalties for violations.”
She said despite increasing numbers of women entering the workforce, there are still significantly fewer of them in senior roles, which are typically associated with higher pay.
“Underrepresentation of women in leadership positions further compounds the wage gap, while cultural norms and workplace policies that fail to support equal career advancement opportunities for women also contribute to the imbalance.”
Nazreen said persistent wage disparities contribute to broader income inequality, worsening social stratification and economic instability.
She said the wage gap perpetuates cycles of poverty and limits educational opportunities for future generations, particularly in families headed by single mothers or households in which women are the primary earners.
“Women’s reduced earning capacity makes them more vulnerable during economic downturns and personal crises, such as divorce or the death of a spouse. With fewer financial resources, women have less flexibility to leave unsatisfactory relationships and have more difficulty recovering from financial setbacks,” she said.
Universiti Malaysia Kelantan Professor of Human Resource and Industrial Relations Prof
Dr Balakrishnan Parasuraman said despite women being top scorers in universities, societal biases, workplace stereotypes and systemic injustices often prevent their achievements from translating into equal pay or workplace opportunities.
“Salaries should be determined by the value of their work, skills and experience rather than gender or educational accomplishments.
“Historically, women have encountered systemic barriers that hinder their career advancement and access to well-paid positions within organisations.”
Balakrishnan said the wage gap also has the potential to adversely affect employee morale and retention, particularly among women, by creating feelings of undervaluation and inequality.
He said women employees may feel frustrated and demotivated when they encounter pay disparities despite having similar qualifications of male colleagues.
Over time, their frustration may drive them to seek opportunities elsewhere, he added.
“A lack or absence of robust policy support regarding workplace gender equality could worsen wage disparities.
“For instance, inadequate parental leave policies, limited access to affordable childcare and lack of flexible work arrangements adversely affect women, restricting their career growth and earning potential.
“Concerns regarding potential career interruptions due to family commitments, such as maternity leave, strengthen the misconception that women are less serious about their careers.”
He said men are more likely to be assertive in salary negotiations, compared with women, who usually refrain from doing so due to societal standards and the fear of backlash.
“Assumptions that men are the primary earners or better suited for high-stakes positions also
influence evaluations and salary offers. This highlights the need for standardised, transparent hiring and evaluation processes to ensure fairness and equity,” he said.
