Projected salary increase in Malaysia in 2024

Malaysia has been showing a consistent uptrend of median salary increase, from 4.8% to 5.0% in the last two years, which is projected to continue to climb in 2024.

Malaysia’s projected salary increase is expected to be 5.1% for 2024, up from 4.8% in the previous year (2023), according to Mercer’s Total Remuneration Survey 2023.

The survey was conducted from April to June 2023, involving more than 660 multinational corporations (MNCs) across 15 industries in Malaysia.

Malaysia’s projected median salary increment falls under Asia’s average of 5.2%, reflecting the varying pay progressions between emerging and developed economies in the region, it was noted.

Here is a list of other countries that were included in the survey, and their anticipated median salary increment for 2024:

1. India (9.3%)
2. Vietnam (7.0%)
3. Indonesia (6.5%)
4. Philippines (5.7)
5. China (5.2%)
6. Thailand (4.7%)
7. South Korea (4.4%)
8. Singapore (4.4%)
9. Hong Kong (3.9%)
10. Taiwan (3.8%)
11. Japan (2.6%)

Salary increases across industries in Malaysia in 2023

Looking back on 2023, the year saw the energy and high-tech industries among those with the highest salary increases in Malaysia, with median salary growths of 6.5% and 6.1% respectively. Here are some other highlights of median salary increments across industries in Malaysia this year:

• The life sciences industry, which recorded the highest salary increase in 2022 at 7.7%, experienced a decrease to 4.3% in 2023.
• The transportation equipment sector saw the lowest increase, from 5% in 2022 to 3.6% in 2023.
• The consumer goods and manufacturing industries recorded a salary increment of 5%, on par with the Malaysia-wide median.

The full year-on-year base movement is as follows:

According to Mercer Malaysia’s Market Leader Koay Gim Soon, over half of the survey participants expressed intent in increasing payroll budgets for both 2023 and 2024, bringing a positive sign to companies and their employees.

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Lead photo / 123RF | Infographic: Mercer