Average Increase in Salary when Changing Jobs in Malaysia
Talent in Malaysia have higher expectations for their salaries due to less than satisfactory year-on-year pay increments and year-end bonuses. Inflation and higher cost of living have changed how people choose to spend their money, leading to increased employee expectations for higher salaries and fair bonuses.
For 2024, companies in Malaysia continue to project an overall salary increase of 5% for executives, management and professional employees, and support staff. Although this is slightly lower than the 5.6% of salary increase in 2023, the average salary increase continues to show steady rise over the last few years. This increase year-to-year may not live up to many Malaysians expectations as well as the ability to cope with the increasing high cost of living.
Therefore, to be able to meet our expectations and sustain our lifestyle, changing to another company is the quickest way. In Malaysia, whatever role you take on, your salary offer will almost always be based on your previous salary. This raise typically ranges from a 10% to 30% increase of your previous salary.
In a report by Randstad, when asked about how much salary increment respondents received from their employers in the past three months, 49% of Malaysian employees received only up to 5% of salary increment. Therefore, the only way to increase your salary substantially is to change jobs or frequently known as job hop. Furthermore, 91% of Malaysians surveyed would change employers if they are offered a higher monthly salary.
Salary is a strong motivator for many Malaysian employees. Receiving a higher salary increment every time we change our job means that we are able to match their earning power with international peers but most importantly it helps us to meet our financial goals, like buying a car or home, earlier.
Salary increase when changing jobs in Malaysia
Darren, Finance & Investment Graduate
In the dynamic job landscape, a top question in Malaysian professionals’ minds is the question of how frequently they should change jobs to not only boost their earnings but also stay competitive in their field. Job mobility has become the new norm, with professionals often changing jobs more frequently than in the past. This shift is driven by various factors, including the pursuit of higher pay, career growth, adaptability to changing industry landscapes, higher cost of living and to be able to attain the desired lifestyle.
Salary is undoubtedly a top motivator for changing jobs. Research suggests that changing jobs every two to three years can result in a salary increase of 20% to 30% compared to staying in the same position. However, it’s essential to strike a balance between seeking better compensation and building a stable career.
According to the 2023 Randstad Malaysia Employer Brand Research, 35% of respondents said that they are planning to quit their jobs because of low compensation and rising cost of living. The 2023 Randstad Workmonitor research found that 4 in 5 Malaysians said that their financial position is preventing them from retiring as early as they want.
What is the job hopping increment in Malaysia?
A recent survey revealed that pay is a significant motivating factor for Malaysian employees, with nine in 10 workers willing to switch jobs for higher pay. The survey in Malaysia by Randstad found that 54 percent of Malaysians believe they are not fairly paid for their work, skills, and experience.
Of the 30% of respondents who changed their employers in the past 12 months, 49% were successful in negotiating for a 20% wage increase.
According to Randstad, out of those who changed jobs in the last year (30 percent of respondents), about half received a 20 percent or more increase in salary. It is crucial for companies to recognise the importance of salary in motivating and retaining staff.
- 49% of Malaysians who chose to stay with their current employer only received up to 5% of salary increment.
- 54% of Malaysians do not think they are being fairly paid for their work contributions, skills and experience.
- 91% of Malaysians would change employers if they were offered a higher salary.
Hays Asia Salary Guide: 2024 Malaysia labour market trends at a glance
- 86% of employees expect to receive a salary raise
- 86% of employers are looking to give a salary raise
- 30% of organisations are looking to increase permanent staff hires
- 42% of workers are looking to switch organisations or explore alternative careers