Employees in Malaysia can look forward to a median 5% increase in their salaries next year, according to Mercer's annual Total Remuneration Survey (TRS) 2022. Small to medium enterprises (SMEs), which have relatively fewer resources, on the other hand, need to double down on their business priorities while ensuring that their compensation and benefits packages are competitive in order to attract and retain the right talent.. "The Surveys forecasted that average salary increase for executives in 2022 is at 4.37 per cent. Purchase history. Salary increments for 2023 back to pre-pandemic levels: Survey Human Resources Online is not responsible for the content of external sites. Forecasted salary increases in Malaysia, Singapore, Indonesia, Thailand MEF | News Could Malaysia see 20% salary increases in 2023? | HRD Asia This return to the pre-pandemic level seen in 2019 reflects growing optimism among employers about their business and overall market outlook. While this was so, he noted it was "not surprising" that lifestyle retail recorded a drop, given the change in consumer consumption patterns, lower spending capacities and reduced leisure activities as a result of the pandemic. -Pexels PETALING JAYA: Companies in Malaysia are forecasting a median 4.5% increase in overall salaries for 2022, according to the annual Total Remuneration Survey (TRS) 2021 by Mercer. This is according to the Mercer's annual Malaysia Total Remuneration Survey (TRS) 2020, conducted between April and . Driver Average Salary in Malaysia 2023 - The Complete Guide However, employers are also keeping a close eye on global headwinds including inflation and supply chain disruption which may dampen growth in the year ahead. This is the average monthly salary including housing, transport, and other benefits. Save my name, email, and website in this browser for the next time I comment. Dissatisfaction with their current pay and the ability to get higher salaries from other companies (77%); Lack of desired flexible work arrangements (31%). According to Mercer, the projected salary increments come on the back of a weak economic outlook for Malaysia, with the country's GDP expected to contract between 3.5% to 5.5% in 2020, as well as continuous pressure on businesses to keep costs down amid uncertainty brought on by the COVID-19 pandemic. Employees, except for those from the high-tech industry, can also expect higher bonus payouts this year, based on Mercers mid-2022 forecast. 2. In 2021, 78 CAs provided for across-the-board salary adjustment based on percentage increase at an average of 5.3%. SMEs especially may respond with cost-adjustment measures such as reduction in margins and increase productivity through automation. Don't get your hopes up on pay rise, say bosses - Free Malaysia Today Consequently, talent retention strategies are of utmost importance in 2022 given the stronger hiring appetite of Malaysian employers. 30% of organisations surveyed (vs 39% in 2022) intend to increase their headcount, while 1% (vs 3% in 2022) plan to decrease their headcount in 2023. March 8, 2022. We break down the big and messy topics of the day so you're updated on the most important developments in Asia's Human Resources development for free. Yet, 38% reported a lack of confidence to hire the skilled talent they need. The top two job families with the highest projected salary increase are healthcare and pharmacy services (5.2%) and production and skilled trades (5.2%). General management jobs are predicted to receive the lowest increment at 3%. "This is likely welcome news for employees as slowing inflation will also give real-wage increases a boost. "A study by MEF found that in 2021, the average salary increase for executives and non-executives were 4.4% and 4.43%, respectively," he said. Apart from the Salary Surveys, MEF also launched the MEF Fringe Benefits Survey 2022 and the Analysis of Collective Agreements and Awards on Terms and Conditions of Employment 2021. 83% of working professionals in Malaysia are expecting a salary increase in 2022. Asia Pacific pay packets are expected to rise by an average of 4.3% next year, up from 3.2% in 2020, even as global wages falter, according to a new salary report released Thursday by consultancy . is an online publication of Lighthouse Independent Media. Within organisations, the top three functions where hiring is prioritised are Technology, Accountancy & Finance, and Engineering/Manufacturing. 83% of working professionals in Malaysia are expecting a salary increase in 2022. Salaries in Malaysia vary drastically between different careers. Employees in Malaysia are expected to see a real salary increase of 2.8% in 2022, up from a growth of 1.5% this year, according to the latest Salary Trends Report by employee management data and software provider ECA International. humanresourcesonline.net. Mercers strategic workforce planning solutions provide a rational business basis to prioritize, develop and fund the people practices needed to support business objectives. ImpactofAI onjobs: Substitution or displacement? 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Per a Mercer Pulse Survey conducted earlier this year, among the key drivers of employee turnover this year were: The increase in minimum wage that was implemented in May is expected to improve the financial wellbeing of lower-income employees and bring about economic growth. Front End Developer Average Salary in Malaysia 2023 The surveys also covered the implementation of the Minimum Wages Order 2022, which increased the monthly minimum wage to RM1,500 and impacted 70.3% of the respondent companies. The retail industry is expecting the biggest jump to 12.6%, from 8.1% in 2021, followed closely by the consumer goods industry with an increase to 16%, from 13.7% the previous year. Salaries range from 1,090 MYR (lowest) to 3,050 MYR (highest). What is the average salary increment in Malaysia? 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Its projected that inflation to be at 0.5% for 2021,compared to -1.2% in 2020. Malaysia's average monthly salaries in 2020 decreased 9% yoy: RM3,224 After all, affordability remains a key criterion for deciding salary budgets. Employees in Malaysia can look forward to a median 5% increase in their salaries next year, rebounding to pre-pandemic levels as seen in 2019. According to a Mercer Pulse Survey conducted earlier this year, among the key drivers of employee turnover this year were dissatisfaction with their current pay and the ability to get higher salaries from other companies (77%); burnout and exhaustion (36%) and the lack of desired flexible work arrangements (31%). Given the cautious business and economic outlook ahead, companies are expecting to slow down their recruitment efforts in 2021, the survey found. You have entered an incorrect email address! However, he said it is important to note that the impact even within industries may be uneven. Lighthouse Independent Media. After all, affordability remains a key criterion for deciding salary budgets. Employees in Malaysia can look forward to a median 5% increase in their salaries next year, rebounding to pre-pandemic levels as seen in 2019. ", Salary increases across industries in 2020, projections for 2021. "Aside from ensuring that their compensation packages remain competitive, employers need to consider the broader employee experience they cant win the competition for talent based on wages alone. A CHRO with about 20 and more years of experience could be taking home about RM25,000 to RM50,000 a month. While companies in Malaysia forecasted an average 5% overall increase in salaries for 2021 when surveyed in the first half of 2020, recent surveys reveal a softening at 4.5%, with 14% of companies forecasting a salary freeze. LBS Binas Unit To Jointly Develop Land In Sungai Pencala With Ringgit Ends Flat Against U.S. Dollar On Cautious Sentiment. 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Malaysias median salary increment is also above the Asia Pacific averageof 4.4%. For non-executives, the average salary increase in 2021 was 4.43%. Small to medium enterprises (SMEs), which have relatively fewer resources, on the other hand, need to double down on their business priorities while ensuring that their compensation and benefits packages are competitive in order to attract and retain the right talent, Koay Gim Soon, Mercers Career Business Leader for Malaysia said. All rights reserved. Additionally, on a non-salary front, the survey also noted a shift to remote working arrangement among Malaysian companies, with 62.2% having implemented them this year, and 31.7% having put in place flexible work arrangements in response to the pandemic. Salaries range from 3,430 MYR (lowest average) to 10,800 MYR (highest average, actual maximum salary is higher).