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Malaysian MPs over paid?
KUALA LUMPUR, Sept 1, 2025: Indonesian President Prabowo Subianto has relented to the will of the rakyat (people) and cut the perks of the Members of Parliament (MPs).
Indonesians had gone to streets in bloody protests of their overpaid MPs.
Prabowo said yesterday, in a bid to calm anti-government protests that have killed at least five people in the country's worst violence in decades, the perks of MPs would be cut.
Indonesia’s total compensation is 12.2 times the National Minimum Wage.
But, did you know that Malaysian MPs’ total compensation is 15.12 times the National Minimum Wage?
No News Is Bad News reproduces below an article posted by The Coverage of the matter:
Malaysian MPs’ Total Compensation Is 15.12 Times the National Minimum Wage, Higher Than Indonesia’s 12.2
1 September, 2025
Malaysia and Indonesia: MP Compensation Compared to Minimum Wage and Public Sentiment
The remuneration of Members of Parliament (MPs) in Malaysia and Indonesia has sparked debates about fairness, economic disparity, and public trust in governance. In Malaysia, an MP’s total compensation is approximately 15.12 times the national minimum wage, while in Indonesia, this ratio ranges from 12.2 to 42.6 times, with significant public anger over recent increases in parliamentary allowances. This article examines the compensation structures in both countries, their relation to minimum wages, and the resulting public sentiment, particularly the anger in Indonesia, drawing on economic data and social context.
Malaysia: MP Compensation and Minimum Wage
In Malaysia, as of 2024, an MP’s monthly salary is around RM16,000, with additional allowances (e.g., entertainment, travel, and phone) bringing the total compensation to approximately RM25,700 per month, or RM308,400 annually. The national minimum wage, effective February 1, 2025, is RM1,700 per month, or RM20,400 annually. This results in an MP’s total compensation being 15.12 times the minimum wage (RM308,400 ÷ RM20,400).
This ratio reflects Malaysia’s economic structure, where MPs are seen as high-level public servants requiring remuneration to match their responsibilities. However, the gap has raised concerns among citizens, especially as living costs rise. Public discourse, often visible on platforms like X, highlights frustration over perceived elitism, though the sentiment is less volatile compared to Indonesia. Malaysia’s stable political system and gradual economic growth have kept such debates relatively contained, with focus often shifting to broader issues like affirmative action policies.
Indonesia: MP Compensation and Public Anger
In Indonesia, MP compensation is significantly higher and more controversial. Members of the House of Representatives (DPR) earn a base salary plus allowances, totaling between Rp66 million and Rp230 million per month, depending on the inclusion of perks like housing, fuel, and rice allowances. Using Jakarta’s minimum wage of Rp5.4 million per month (or Rp64.8 million annually) as a benchmark, the ratio ranges from 12.2 times (Rp792 million ÷ Rp64.8 million).
Notably, a Rp50 million monthly housing allowance alone is 9.3 times the minimum wage.
The announcement of the Rp50 million housing allowance in September 2024 triggered widespread public anger in Indonesia. Citizens, grappling with economic challenges like inflation and stagnant wages, expressed outrage on social media and through protests. Posts on X highlighted the disparity, with many Indonesians arguing that MPs, already perceived as disconnected, were prioritizing personal gain over public welfare. For instance, in regions like Banjarnegara, where the minimum wage is as low as Rp2.17 million per month, the housing allowance alone is 23 times the local minimum wage, amplifying perceptions of inequality.
This anger stems from Indonesia’s broader socio-economic context. Despite economic growth, income inequality remains stark, with a Gini coefficient of 0.38 in 2023. The allowance increase, approved by President Joko Widodo’s administration, was seen as tone-deaf, especially as ordinary workers struggle. Public trust in the DPR, already low due to corruption scandals, plummeted further, with hashtags like #DPRCurang (DPR Cheats) trending on X.
Implications and Public Trust
In Malaysia, the 15.12 times ratio, while significant, aligns with the country’s middle-income status and has not sparked widespread protests. However, discussions on X suggest growing scrutiny, particularly among younger voters who demand transparency. In Indonesia, the public’s anger reflects deeper frustrations with governance and inequality. The contrast between MPs’ lavish allowances and the struggles of minimum-wage workers—many earning far less in rural areas—has eroded trust in institutions.
Both nations could benefit from addressing these disparities. Malaysia might consider transparent reviews of MP remuneration to preempt unrest, while Indonesia’s government faces pressure to roll back allowances or redirect funds to public services. The anger in Indonesia serves as a cautionary tale for Malaysia, where rising costs could amplify similar sentiments if left unaddressed.
Here is a detailed breakdown of the compensation, allowances, and benefits for a Member of Parliament (MP) in Malaysia as of the latest available data (typically updated through the Members of Parliament (Remuneration) Act 1980 and subsequent amendments).
1. Basic Salary (Indemnity)
This is the core fixed monthly payment.
· Basic Salary:RM 16,000 per month.
· This amount was revised upwards in recent years from a previous lower figure.
2. Fixed Monthly Allowances
These are paid every month regardless of expenses incurred.
· Entertainment Allowance: RM 10,500
· Office Allowance:RM 4,300
· Intended to cover the cost of running a service center in their constituency.
3. Meeting Attendance Allowances
MPs are paid for attending official meetings.
· Parliamentary Sitting Allowance: RM 500 per day when Parliament is in session.
· Committee Meeting Allowance: RM 500 per meeting for attending official parliamentary committee meetings.
4. Claimable Expenses & Reimbursements
These are critical parts of the compensation package. MPs can submit claims for these expenses, which are reimbursed upon approval.
· Official Travel Claims:
· Travelling Allowance: Claims for official travel within the constituency and to/from Parliament.
· Mileage Claim: A rate per kilometer for using a personal vehicle for official duties.
· Accommodation & Living Allowances:
· Hotel Accommodation: Reimbursed for stays in Kuala Lumpur during parliamentary sessions if the MP does not own a home in the capital.
· Daily Subsistence Allowance (DSA): A fixed per diem rate for meals and incidental costs while on official travel outside of their constituency.
· Office Operations:
· Staff Salaries: MPs are given a budget to hire support staff (typically 3-5 people, e.g., personal assistant, secretary, community affairs officer). The total allocation for this can be around RM 30,000 per month.
· Office Rental: Allowance to rent and maintain a service center in their constituency.
5. Other Major Benefits & Entitlements
These are non-cash benefits that have significant financial value.
· Pension:
· MPs who have served a minimum of 36 months (3 years) are entitled to a pension for life.
· The pension amount is calculated based on their final salary and length of service.
· Healthcare:
· Comprehensive medical coverage for themselves and their immediate family at government hospitals.
· Telecommunications:
· Monthly phone and internet allowance.
· Travel:
· Free Travel Pass: For domestic air travel (Malaysia Airlines and Firefly) and rail travel (KTMB) for official business.
· Fuel Rebate: A significant rebate on petrol purchases.
· Death & Gratuity Benefits:
· A gratuity payment is made to the family of an MP who passes away while in service.
Disclaimer: The exact figures can be subject to change through new government circulars or budgets. For the most precise and official numbers, one would refer to the latest Members of Parliament (Remuneration) Act and related documents on the Parliament of Malaysia’s website.
Conclusion
The compensation of MPs in Malaysia (15.12 times the minimum wage) and Indonesia (12.2 times) underscores economic disparities that shape public sentiment. While Malaysia maintains relative calm, Indonesia’s recent allowance hikes have ignited public anger, reflecting broader issues of inequality and trust. Acknowledging these gaps and fostering transparent dialogue are crucial for both nations to maintain social cohesion and ensure governance reflects the needs of all citizens, not just the elite.
Deadly Indonesia protests force U-turn on lawmakers' perks
Armed Indonesian military troops line up as they prepare for deployment amid the widespread anti-government protests and rioting over issues such as extra pay for parliamentarians and housing allowances led by student group that resulted into riots rocked Southeast Asia's largest economy, in Jakarta, Indonesia August 31, 2025. REUTERS/Willy Kurniawan
By Stefanno Sulaiman and Gayatri Suroyo
· Military deployed to guard key locations
· Student groups demand deeper reforms beyond perks cut
· Rupiah and stock index hit by protests
· Protests led to five deaths, worst violence in years
JAKARTA, Aug 31 (Reuters) - Indonesian political parties have agreed to cut lawmakers' benefits, President Prabowo Subianto said on Sunday, in a bid to calm anti-government protests that have killed at least five people in the country's worst violence in decades.
Protests began on Monday over what demonstrators called excessive pay and housing allowances for parliamentarians, escalating into riots on Friday after a motorcycle rideshare driver was killed during police action at a protest site.
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Homes of political party members and state buildings were ransacked or set ablaze, shaking investor confidence in the Southeast Asian economy and triggering a steep selloff on its stocks and currency markets on Friday.
Looters broke into a house owned by Finance Minister Sri Mulyani Indrawati outside the capital Jakarta overnight, state news agency Antara reported on Sunday. She was not in the house at the time and it was not clear if she uses the property often.
More protests are planned for Monday, and student groups did not call them off after Prabowo's announcement.
Prabowo, speaking at a press conference at the Presidential Palace and flanked by the leaders of various political parties, said he had ordered the military and police to take stern action against rioters and looters. He said some of the unrest bore the signs of terrorism and treason.
"Leaders in parliament have conveyed that they will revoke a number of parliament policies, including the size of allowances for members of parliament and a moratorium on overseas work trips," Prabowo said.
"To the police and the military, I have ordered them to take action as firm as possible against the destruction of public facilities, looting at homes of individuals and economic centres, according to the laws," he added.
CHALLENGE TO PRABOWO
The protests represent the most significant challenge yet to Prabowo's government, which has faced little political opposition since taking office nearly a year ago.
Prabowo, who cancelled a high-profile trip to China due to the unrest, also met on Sunday with key members of his cabinet at the Presidential Palace to discuss the situation.
Many ministers and political leaders arriving at the palace used civilian number plates instead of special ones given to officials, a witness said, in an apparent security measure as unrest simmered in some places.
The military was deployed to guard the palace on top of the usual secret service detail. Many key ministers' homes and government installations were also being guarded by the military on Sunday.
It remains unclear who is behind the rioting and looting that followed the protests, which were initially organised by student associations.
Muzammil Ihsan, head of the All Indonesian Students' Executives Body, the country's largest student umbrella group, told Reuters cutting lawmakers' perks was "not enough" and said further demonstrations were being "considered".
"The government must resolve deep-rooted problems. The anger on the streets is not without cause," Ihsan said.
Tegar Afriansyah, the chairman of a smaller student group, Indonesian Student League for Democracy, which has been protesting since Monday, said the presidential announcement does not address the root of the problem, which is "political oligarchy and an unequal economic structure".
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