Malaysians in the workforce are setting their sights on higher salaries for the upcoming year.
71% of employees in Malaysia expect pay raise
According to the recent Robert Walters Salary Survey 2024, a significant 63% of employees in Malaysia anticipate salary increments next year.
Even with the awareness of their industries being affected by the current economic situation, 71% hope for a pay rise of up to 10%.
The survey further unveils that negotiating for higher salaries is no longer a taboo, with over half (54%) feeling confident in their bargaining abilities.
This shift in mindset highlights an increasing focus on financial gains, as employees now give more importance to bonuses, with many expecting at least a 6-10% bonus relative to their base salary. Additionally, an overwhelming 90% regard bonus schemes as a critical factor when considering new job offers.
Mismatch in expectations between employee and employer
However, there’s a gap between employee expectations and employer intentions. The survey found that approximately 53% of employers plan to offer only a 1-5% salary increase.
Despite this, 83% of employers are prepared to enhance employee benefits, including bonuses and health insurance schemes, underlining the importance of holistic welfare and productivity improvements.
Looking ahead to 2024, organizations are preparing for general annual salary reviews, projecting increases ranging from 3% to 7%, aligning with the national cost and wage inflation trends.
Encouragingly, 64% of employers are likely to offer pay rises in the next year, with 58% committed to exceeding the inflation rate.
Job changers can expect even higher increments, ranging from 15% to 20%, and in certain in-demand roles, this could surge to as much as 30%.
