With the Malaysian government reviewing BUDI95 petrol subsidy targeting, the question of which income group a household belongs to has become one of the most searched topics in Malaysia. Here is what the Department of Statistics Malaysia actually says, based on the Household Income Survey 2024.
The First Thing to Understand: Household Income, Not Personal Salary
These classifications are based on household gross income — the combined pre-tax earnings of all persons living together and sharing expenses. A single person earning RM8,000 and a dual-income household where each spouse earns RM4,000 may have the same per-person income but very different household classifications.
DOSM 2024 Official Thresholds
- B40 (Bottom 40%): Monthly household gross income up to RM5,249
- M40 (Middle 40%): Monthly household gross income RM5,250 to RM11,819
- T20 (Top 20%): Monthly household gross income above RM11,819
Additional context: national average household income RM9,155/month. National median RM7,017/month. Average household size 3.7 persons. Source: DOSM Household Income Survey Report 2024.
A Practical Example
A household where one spouse earns RM8,000 and the other RM4,500 has a combined household income of RM12,500 — T20. The same RM8,000-earning individual living alone has a household income of RM8,000 — M40. Same individual salary, completely different classification.
State-Level Variation
The thresholds vary by state. A household earning RM8,000 per month may be classified as T20 in Kelantan but M40 in Selangor, reflecting the different income distributions across states. DOSM publishes state-level decile data at dosm.gov.my for more precise analysis.
The BUDI95 Policy Context
The government is studying whether to remove RON95 fuel subsidies for higher-income households. The Prime Minister has indicated the government is still reviewing whether the cut-off should apply at the T20, T15, T10, or T5 level. No final decision has been announced. Economists have estimated that excluding the T20 from BUDI95 could save approximately RM1.5 billion per month.
PADU and What to Do Now
The PADU system — integrating data from over 200 agencies and more than 30 million profiles — will be used to support more targeted subsidy distribution. Ensure your PADU profile reflects accurate, current income information.
The Bigger Financial Picture
Income classifications are policy instruments. They determine subsidy eligibility today but will likely shift as policy evolves. The more durable question for every Malaysian household — at every income level — is whether you are building financial resilience: managing your debt-service ratio, maximising EPF, and deploying savings productively. Subsidies come and go. Your financial foundation does not have to.
⚠️ Disclaimer: Income thresholds based on DOSM Household Income Survey Report 2024, published October 2025. Figures refer to monthly household gross income. State-level thresholds vary. BUDI95 subsidy policy is subject to government review and may change. Always verify current DOSM figures at dosm.gov.my. Not financial advice.
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