Work Experience as a Determinant of Salary Growth in Malaysia

Abstract

ABSTRACT

Identifying the factors that influence salary progression is critical for examining employment market dynamics and income distribution. Work experience is often a key factor in shaping career development and long-term earnings. This study examines at the association between years of work experience and monthly salary among 96 Malaysian workers aged 18 to 57. Descriptive findings reveal that more than 80% of respondents earn less than RM6,000 per month, with the majority in their early to mid-career stages. Correlation analysis revealed a strong and statistically significant relationship between experience and salary (ρ = 0.752, p-value < 0.05). Regression results indicated that every additional year of experience leads to an average increase of RM222 in monthly salary, which accounts for 56.6% of the variation in earnings. The findings highlight the importance of experience in driving salary growth, while also highlighting disparities by employment sector, marital status, and residential area. Overall, the study demonstrates that Malaysian salaries are determined by both individual career development and broader social and economic conditions.