T15 Income Malaysia: Definition & Threshold
T15 is a household income classification introduced in Malaysia’s Budget 2025. It identifies the top 15% of households by total monthly income. A household that earns approximately RM13,000 or more per month falls within this group. The government uses this classification to implement targeted subsidy reforms and ensure public resources reach those who need them most.
T15 Income Classification
The T15 income group sits at the top tier of Malaysia’s household income distribution. It replaced the broader T20 classification for certain policy decisions starting from Budget 2025. The Department of Statistics Malaysia (DOSM) determines this ranking based on the Household Income and Expenditure Survey (HIES).
T15 households typically consist of dual-income earners. In a standard T15 household, each spouse contributes roughly RM6,500 per month or more. Single-income households need to earn the full threshold amount from one source.
The classification considers gross household income before tax deductions. This includes salaries, business income, rental income, dividends, and other recurring earnings. EPF withdrawals and one-off payments are not counted.
T15 Income Threshold by State
The T15 threshold is not a single national figure. It varies by state because cost of living and economic activity differ across Malaysia. The table below shows the monthly household income required to be classified as T15 in each state and federal territory.
| State / Territory | T15 Threshold (RM/month) |
|---|---|
| W.P. Putrajaya | RM21,726 |
| W.P. Kuala Lumpur | RM19,005 |
| Selangor | RM17,849 |
| Johor | RM13,387 |
| Pulau Pinang | RM13,206 |
| Melaka | RM12,766 |
| W.P. Labuan | RM12,269 |
| Negeri Sembilan | RM11,125 |
| Terengganu | RM10,628 |
| Sarawak | RM10,595 |
| Sabah | RM9,902 |
| Perak | RM9,143 |
| Perlis | RM8,814 |
| Pahang | RM8,721 |
| Kedah | RM8,473 |
| Kelantan | RM7,759 |
Urban states like W.P. Putrajaya and Kuala Lumpur have thresholds nearly three times higher than Kelantan. A household earning RM10,000 per month qualifies as T15 in Kelantan but falls below the threshold in Selangor. This means T15 status does not indicate the same purchasing power across all states.
T15 vs T20 Income Comparison
T15 is a subset of the T20 group. Both classify high-income households, but they serve different policy purposes. The comparison below highlights the key differences.
| Aspect | T20 | T15 |
|---|---|---|
| Definition | Top 20% of households | Top 15% of households |
| Income Threshold | Starts at RM11,820/month | Starts at approximately RM13,000/month |
| Subgroups | T1 (RM11,820 to RM15,869) and T2 (RM15,870 and above) | No specified subgroups |
| Regional Variation | Not state-adjusted | Varies by state (RM7,759 to RM21,726) |
| Policy Context | General income classification | Introduced in Budget 2025 for targeted subsidy reform |
The shift from T20 to T15 means that households in the T1 subgroup (earning RM11,820 to RM12,999) are no longer grouped with the highest earners. This benefits those borderline households who previously lost access to certain subsidies under the broader T20 classification.
How T15 Affects Subsidies and Benefits
The Malaysian government introduced the T15 classification primarily to refine subsidy distribution. Households classified as T15 face changes in several areas.
Fuel Subsidy
Under the targeted subsidy programme, T15 households may receive reduced or no fuel subsidies for RON95 petrol. The government aims to redirect savings from high-income households toward B40 and M40 groups.
Utility and Essential Goods
T15 households may pay market rates for certain utilities and essential goods that previously received blanket subsidies. This includes electricity tariffs above a certain usage threshold.
Tax and Fiscal Policy
While T15 classification does not directly change income tax brackets, it serves as a reference point for means-tested policies. The Inland Revenue Board (LHDN) uses household income data alongside T15 thresholds when assessing eligibility for specific tax reliefs and rebates.
How to Determine Your T15 Status
Calculating whether your household falls within the T15 bracket requires a few straightforward steps.
- Add up the total gross monthly income of all working adults in your household. Include salaries, business profits, rental income, and investment returns.
- Identify your state of residence.
- Compare your total household income against the T15 threshold for your state using the table above.
If your combined household income equals or exceeds the threshold for your state, your household is classified as T15. There is no official online calculator for T15 status. The most reliable method is comparing your income directly against the DOSM data published with each Budget announcement.
M40 Income Group
M40 represents the middle 40% of Malaysian households by income. This group is divided into four subgroups (M1 to M4) with monthly household incomes ranging from RM5,250 to RM11,819. The median incomes vary between RM5,770 and RM10,552 depending on subgroup.
M40 households form Malaysia’s middle class. Government policies for this group focus on reducing cost-of-living pressures and supporting homeownership through programmes like PR1MA and affordable housing schemes.
B40 Income Group
B40 refers to the bottom 40% of households by income. This group is divided into four subgroups (B1 to B4) with monthly incomes ranging from below RM2,560 to RM5,249. Median incomes for B40 households range between RM2,012 and RM4,764.
B40 households receive the most government assistance. Key programmes include Bantuan Sara Hidup (BSH), subsidised healthcare, and education aid through PTPTN and scholarship programmes. The T15 reclassification allows the government to channel more resources toward this group.
Significance of T15 for Malaysian Workers
For employees and employers, the T15 classification carries practical implications. Workers in T15 households may need to budget differently as subsidy reductions take effect. Employers offering benefits packages should understand how household income classifications affect employee eligibility for government programmes.
Dual-income households where both spouses earn above RM6,500 each will likely fall within T15 in most states. Single earners need a higher individual salary to push their household into this bracket. Understanding your position helps with financial planning, tax optimisation, and anticipating policy changes from future budgets. Jika anda ingin mengetahui syarikat yang menawarkan gaji setinggi ini, lihat senarai syarikat terbaik dengan gaji tinggi di Malaysia untuk rujukan.