Updated on March 1, 2024
You will learn about the Malaysia salary increase for 2024 in this article: Pay raise Forecasts and updated salary dates for Malaysia. Predicting the main obstacles that remain in the way of attracting workers, salaries will rise across industries in 2024. Salary increases in Malaysia are predicted to rise by 5.1% from 4.8% in the prior year. More than 660 multinational corporations participated in the survey, and it is anticipated that their median salary increases will decline, reflecting the disparities in pay progressions across developed economies. Continue reading this article to learn more about anticipated wage increases, the Malaysia Salary Increase 2024, and other topics.
Malaysia Salary Increase 2024
The Malaysian companies have maintained their 5% annual salary increase projection for support, management, and executive professional workers. The yearly base salaries of jobs in broad industries have been compared to the base salary job through the General Industry using the Market Competitiveness Index. However, when it came to salary competitiveness, education-related businesses such as real estate, biopharma & life science, and construction & engineering trailed behind.
It has been projected that employees in Malaysia will receive an overall salary increase of 5% in 2024. These, however, pale in comparison to the 5.6% of 2023 salaries. The average salary increase over the previous few years has been increasing steadily. These are the federal trends that are being noticed, and they are closely related to the inflation worries that are influencing the different aspects that go beyond pay increases.
Wage Increase Prediction 2024
After reaching record highs, inflation is now beginning to decline, and the labor markets are changing due to voluntary turnovers and attrition rates of 18.5% in 2023 and 2024, respectively. Employers will still have to deal with serious difficulties in attracting new employees. They must maintain their attention on the rewards offers in their entire balancing package. When it comes to needs and wants, the monetary and non-monetary will continue to compete.
The industry predicts that Malaysia’s salary increases will increase. It is anticipated that salaries in the general sectors will rise by 5.0 percent from the prior year. The asset management sector is expected to see a salary increase of 4.9, the banking sector of 4.7, the oil and gas sector of 4.9, the real estate, engineering and construction, and insurance sectors of 5.1, the education sector of 5.0, and the shared services and outsourcing sectors of 5.1 more than the actual salary increase of the previous year.
New Wage Dates in Malaysia
Malaysia’s policy of progressive wages Workers’ salaries are progressively raised in accordance with their performance, abilities, and experience. Thousands of businesses will be involved in their pilot project, which is scheduled to begin in June 2024. Poor pay seriously affects an employee’s ability to support themselves, as they must spend a large percentage of their income on savings and essentials. The bulk of the workforce works for small and medium-sized companies, which will all be impacted by the new wage policy.
According to the WTW survey, Gen Z employment has been highest in sectors like banking, insurance, tech, and others. Malaysia’s salary increase forecast for 2024 is expected to grow at a rate of more than 50% annually. The passion economy is giving traditional employment the kind of certainty that it once had. Three obstacles are preventing Malaysia’s corporate workforce from growing, and they are as follows:
The COVID-19 pandemic has created a major career option in accelerated education, and as a result, the young, talented workforce is looking for opportunities abroad. This has caused a major setback for the workers. Younger workers are also content with the ongoing creation of new roles in addition to their demands for autonomy, adaptability, and scalability—all of which contribute to a feeling of purpose.
The Malaysia Salary Increase will assist employees with lesser incomes in covering their living expenses. With the recent wage rate increase, workers will be able to manage their federal expenses. The new wage rates will be predicted based on inflation and the rising cost of living. The rising rate of inflation and the national cost of living—which allows individuals and families to manage their living expenses—are taken into account by the Federal Government when determining the new rates.