2024 Wage Hikes Predicted To Be 5%, Down From 5.6pc In 2023



According to a WTW compensation poll, this year’s average wage hike for executives, managers, professionals, and support personnel are predicted to be 5%, compared to 5.6% last year.

“Even though this is marginally less than the 5.6% growth in compensation in 2023, the average wage increase has been rising steadily over the previous few years.

This year, similar patterns are seen throughout the nation’s industries. However, variables beyond budgets for compensation increases are nonetheless influenced by inflationary pressures and worries about a tight labor market, according to a statement released by WTW today.

The October 2023 poll on overall compensation in Malaysia included participation from more than 600 companies. The study’s participants, who are Malaysian employers, employ 323,837 workers.

Based on WTW’s report, in 2023, workers in industries such as oil and gas, banking, technology, media and gaming, asset management, shared services & outsourcing, and insurance received base salaries that were more competitive than those in education, biopharma and life sciences, real estate, construction, and engineering.

Related link: 4 Ways Progressive Wage Model Benefits Malaysian Employers

This is predicated on a market competitiveness index, in which the yearly base salaries of various industries’ employment were compared to the base incomes of all industries’ jobs.

The annual base pay of positions in different industries were compared to the base wage of all industries based on a market competitiveness index.

Businesses in the banking, technology, media, and gaming, as well as shared services and outsourcing sectors, outperformed the total industry median in terms of base pay when compared to the general industry.

The largest yearly base salaries were given by companies in the oil and gas and asset management sectors last year.

The labor market in Malaysia is changing even though inflation isn’t as high as it was in previous years, according to Tan Juan Jim, WTW’s head of work and rewards for Southeast Asia and Malaysia.

“Voluntary turnover and attrition continue to increase and reach a high of 18.5 per cent in 2023 compared to 16.5 per cent in 2022.”The recruitment and retention of critical talent will remain a major talent concern for Malaysian employers. They must continue to concentrate on keeping the whole bundle of benefits they provide in balance,” he remarked.

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