But average salary increase expected to go up in 2025
The average salary increases in Malaysia went down in 2024 as organisations made adjustments amid "ongoing global challenges," according to the Malaysian Employers Federation (MEF).
MEF executive director Datuk Shamsuddin Bardan said executives saw an average salary increase of 4.9% in 2024, down from the 5.88% in 2023.
Non-executives received a 4.85% increase, down from the 5.56% last year, Malay Mail reported.
Despite the lower increase reported, the MEF said 88% of organisations in Malaysia granted employees a salary increase. Another 80% said they will also provide bonuses this year.
"The figures suggest 2023 was a strong year, while 2024 reflects adjustments to ongoing global challenges, including conflicts in Europe and the Middle East," Shamsuddin said as quoted by Malay Mail.
The MEF executive director also predicted that salary increments will likely improve next year to 5.5% for executives and 5.41% for non-executives.
"For 2025, projected bonuses are slightly higher at 2.14 months for executives and 1.82 months for non-executives," he added.
According to Shamsuddin, the improvement may be attributed to the implementation of the RM1,700 minimum wage and the government's plan to expand the progressive wage model beyond the initial 1,000 firms.
Salaries across Southeast Asia are projected to increase next year amid recruitment and retention challenges, according to the latest projections from Aon. In Malaysia, Aon said the budgeted salary increase for 2025 is at five per cent.
