According to a recent report, companies in Malaysia are projecting a 5% increase in salaries for professionals, managers, and support staff in 2024. This marks a slight reduction from the 5.6% increase observed in 2023. It’s worth noting that the average salary growth has been relatively gradual over the past few years.
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Malaysia Wage Increase 2024
The landscape of employment is undergoing significant changes. In 2023, a notable 18.5% of individuals voluntarily departed from their positions, and this trend is anticipated to persist into 2024. As a result, organizations will be compelled to exert considerable effort to entice fresh talent. They will need to provide competitive compensation packages and a range of supplementary perks in order to maintain their appeal.
Wage Increases in Different Industries
The wage increase in Malaysia in 2024 will depend on the industry:
Type of Work |
Expected Wage Increase |
|---|---|
General sectors |
5.0% |
Asset management |
4.9% |
Banking |
4.7% |
Oil and gas |
4.9% |
Real estate, engineering, and construction |
5.1% |
Education |
5.0% |
Shared services and outsourcing |
5.1% |
New Salary Policy in Malaysia
Starting in June 2024, Malaysia is set to implement a new salary policy. This policy is designed to gradually increase the wages of workers, taking into account their skills, experience, and job performance. The aim is to ensure that employees are compensated fairly for their contributions to their respective companies.
This policy will primarily impact small and medium-sized businesses, which make up a significant portion of the Malaysian workforce. These businesses will need to adjust their payroll structures to accommodate the new policy, ensuring that their employees’ wages increase in line with the stipulated guidelines.
Challenges and Opportunities
The workforce in Malaysia is currently facing three major challenges:
- Brain Drain: Many talented workers are seeking employment opportunities abroad, attracted by higher salaries and better career prospects. This trend is causing a brain drain in Malaysia, with the country losing some of its most skilled workers to overseas markets.
- Impact of COVID-19: The COVID-19 pandemic has created significant disruptions in the job market. Many industries have been hit hard, leading to job losses and changes in employment trends. As a result, there has been a shift towards education and career options that offer more stability and security in these uncertain times.
- Changing Workforce Expectations: Younger workers are increasingly looking for jobs that offer more than just a paycheck. They value control over their future, flexibility in their work schedules, and opportunities for growth and development. They also seek roles that provide a sense of purpose and align with their personal values and interests.
Despite these challenges, there is a silver lining. Salaries in Malaysia are expected to see a significant increase in 2024, with a projected growth of over 50% compared to the previous year. This increase is likely to make Malaysian companies more attractive to local talent, potentially reversing the brain drain trend and contributing to the country’s economic growth.
Conclusion
The salary increase in Malaysia will help low-income workers cope with the cost of living. The new salaries will be based on the rising cost of living and inflation. With the recent salary increase, workers will be able to manage their expenses better. The government decides on new salaries by looking at rising inflation and the national cost of living, which helps individuals and families manage their living expenses.
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Mahesh Sen, a seasoned student advisor, writes informative articles on educational topics. Mahesh gives valuable insights and practical advice to guide students through their academic challenges and milestones.