2024 Salary Forecast: Anticipated Wage Growth and Revised Pay Schedule in Malaysia
In this article, we’ll delve into Malaysia’s salary landscape for 2024, exploring wage predictions and new pay dates. Forecasts suggest a 5.1% increase, up from the previous year’s 4.8%, as industries grapple with challenges in talent attraction. A survey of over 660 multinational corporations reveals varying salary increments, mirroring the pay trends in developed economies. For more insights into Malaysia’s 2024 salary outlook and anticipated wage hikes, keep reading.
Malaysia Salary Increase 2024
Malaysian companies anticipate a 5% salary increase for executive professionals, management, and support staff in 2024. The market competitiveness index compares annual base salaries across industries, revealing variations in salary competitiveness. Sectors like Education, Real Estate, Biopharma & Life Science, and Construction & Engineering lag behind in this aspect.
The projected 5% overall salary increase in Malaysia for 2024 is slightly lower than the 5.6% observed in 2023. Despite this, the average salary continues its steady upward trend over recent years. These trends align with concerns about inflation, which exert tight influence on factors extending beyond salary adjustments.
Wage Increase Prediction 2024
The inflation is slowing down from the heights, the labour markets are shifting with voluntary turnovers and attrition height of 18.5% in 2023, and this trend looks to continue in 2024. The employers will continue facing the significant challenges of attraction. They are required to stay focused on their entire balancing package of rewards offers. Both the monetary and non-monetary will remain competitive with needs and wants.
In Malaysia, salary increases are forecasted to vary across industries. General sectors are expected to see a 5.0% wage increase from the previous year. Asset management salaries are projected to rise by 4.9%, banking by 4.7%, and the oil and gas industries by 4.9%. Real estate, engineering, construction, and insurance are anticipated to experience a 5.1% increase. The education sector is predicted to witness a 5.0% salary hike, while shared services and outsourcing industries are also expected to see a 5.1% increase compared to the previous year’s actual salaries.
New Wage Dates in Malaysia
In Malaysia, the Salary Increases reflect a progressive wage policy that adjusts based on workers’ skills, experience, and performance. Set to commence in June 2024, this initiative involves thousands of companies in a pilot project, targeting small and midsize businesses, which constitute the majority of the workforce. Low wages, impacting workers’ livelihoods and basic needs, are a key concern addressed by this new policy.
According to the WTW survey, industries such as banking, insurance, and technology are actively hiring Gen Z employees, contributing to Malaysia’s rapid salary increase of over 50% year on year in 2024. The traditional employment landscape is evolving, with the passion economy gaining prominence.
Malaysia’s corporate workforce faces three growth challenges: a talent exodus seeking opportunities abroad, setbacks post-COVID-19, and the demand for new positions that offer younger workers control, flexibility, scalability, and a sense of purpose.
The Malaysia Salary Increase aims to alleviate the cost of living for lower-income workers. Predicted wage rates consider the rising cost of living and inflation, enabling workers to manage federal expenses. The Federal Government establishes these rates based on calculations involving inflation and the national cost of living, supporting individuals and families in meeting their living expenses.
