KUALA LUMPUR: A compensation survey by WTW, found that average salaries are expected to increase 5 per cent for executives, management and professional employees, and support staff this year, lower than the 5.6 per cent increase seen last year.
"Although this is slightly lower than the 5.6 per cent of salary increase in 2023, the average salary increase continues to show steady rise over the last few years.
Similar trends are observed across various industries in the country this year. However, inflationary pressures and concerns over a tight labor market continue to influence factors beyond salary increase budgets," WTW said in statement today.
A total of over 600 companies participated in the Malaysia total compensation survey conducted in October 2023. Respondents, who participated in the study, employ 323,837 employees in Malaysia.
WTW reports that in 2023, basic salaries for workers in sectors including insurance, banking, technology, media and gaming, asset management, shared services & outsourcing, and oil & gas were more competitiv than those in biopharma and life sciences; education; real estate, construction, and engineering.
This is based on a market competitiveness index where the annual base salaries of jobs across industries were ranked against the base salary of jobs from the general Industry.
Based on a market competitiveness indicator, the yearly base salaries of various industries' jobs were compared to the base salary of all industries' occupations.
When benchmarked against the general industry, companies in banking; tech, media & gaming; and shared services & outsourcing industries exceeded expectations, offering annual base salaries that surpass the general industry overall median.
Companies in the asset management and oil & gas industries paid the highest annual base salaries last year.
WTW head of work & rewards, Southeast Asia and Malaysia, Tan Juan Jim said although inflation is slowing down from the heights of recent years, the labour market in Malaysia is shifting.
"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. "Employers in Malaysia will continue to face significant talent challenges including the attraction and retention of key talent. They will need to stay focused on balancing the entire package of rewards they offer," he said.