KUALA LUMPUR: Aon, a leading global professional services firm, said its findings from its 2023 Salary Increase and Turnover Study show that salary increases are expected to stay flat at 5 per cent in 2024.
Salary increases are expected to hold steady in Malaysia despite economic slowdown concerns as employers struggle with talent attrition.
These insights are based on data gathered in the third quarter of 2023 from 950 companies across Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.
The attrition rates across Malaysia rose to 16.2 percent in 2023 from 14.9 percent in 2022 as a consequence of an ever-changing talent strategy and the ongoing gap between supply and demand of talent.
"Businesses in Malaysia seemed insulated from global economic trends. However, the country is now beginning to experience slower growth escalated by the rising cost of living and a depreciating ringgit. 2024 is expected to be similar with moderate growth and consumption levels to normalise. It is imperative for organisations to make informed decisions using insights and robust market data to create a holistic employee value proposition.
"This will not only ensure pay packages remain competitive to sustain the rising cost of living but will also help build a resilient workforce in which employees are rewarded for their efforts and results," Aon in Malaysia market leader of Talent Solutions Rachel Jayaprakash said in a statement.
Looking ahead to 2024, salaries across industries in Malaysia also continue to vary in addition to the differences between countries.
The retail industry continues to have the highest budgeted salary increases at 5.2 percent, technology, life sciences and medical devices, and manufacturing are at 5.0 percent, while financial services is at 4.5 percent.