Malaysia sees pay increases steadily rise in 2024

Salaries will continue to rise steadily in 2024 across certain industries, but challenges persist for organisations to attract new employees.
By: | January 9, 2024

Pay increases in Malaysia look to remain high in 2024 across certain industries in 2024.

This was one of the key findings from a survey about compensation conducted by WTW, a global advisory, broking and solutions firm. The survey found that employees in Malaysia working in industries such as Insurance; Banking; Tech, Media & Gaming; Shared Services & Outsourcing; Asset Management; and Oil & Gas, received a more competitive annual base salary in 2023 compared to those in Education; Real Estate, Construction & Engineering; Biopharma & Life Sciences which saw a lag.

For 2024, organisations on a whole in Malaysia continue to project an overall salary increase of 5% for executives, management and professional employees, and support staff. While this projection is slightly lower than the 5.6% of salary increase in 2023, the average salary increase continues to show steady rise over the last few years.

However, Malaysia’s corporate workforce will face possible challenges in growing its Gen Z’s population, such as seeking opportunities above, a setback in employees getting credentials due to the effects of the pandemic; and meeting the expectations and different priorities of Gen Z and their careers.  

“Employers in Malaysia will continue to face significant talent challenges including the attraction and retention of key talent,” said Tan Juan Jim, Head of Work & Rewards, South-East Asia and Malaysia, WTW.

READ MORE: More employees seek better opportunities in 2024

He added that organisations would need to strategise balancing the entire package of rewards they offer, both monetary and non-monetary to remain competitive and align with employees’ needs and wants. They will also need to develop a compelling employee value proposition that encompasses a comprehensive view of total rewards, including both financial and personal well-being benefits.