Salaries to Increase 5.3% in 2020: Aon Malaysia 2019 Salary Increase & Total Compensation Measurement™ Survey

• Salaries increased 5.1% on
  average in 2019 and are projected to increase 5.3% in 2020.
• Median pay for engineering
  jobs is, on average, 14% more and pay for roles in technology are 12% higher
  than the Malaysia market as a whole.

SINGAPORE – Media
OutReach – 20 November 2019 – Salaries in Malaysia rose by 5.1% in 2019 and are expected to
jump by 5.3% in 2020, according to the Malaysia 2019 Salary Increase &
Total Compensation Measurement^TM Survey by Aon (NYSE: AON), a
leading global professional services firm providing a broad range of risk,
retirement, and health solutions.

 

These
rates indicate that wages in Malaysia are increasing faster than those in
Singapore (3.8%) and Thailand (4.9%) but slower than in Indonesia (7.4%). With
annual inflation at 2.4%, Malaysians experienced an
average growth of 2.7% in real wages in 2019, up from 2.1% the previous year.

 

In the face of a
growing economy and steady salary increases, Malaysian businesses must evaluate
their compensation packages, to ensure they can continue to attract and retain
their most critical talent.

 

Analytical, strategic and specialist roles earned top
dollar: App Developers amongst the hottest jobs in Malaysia

 

According to the Aon survey, median pay for jobs in engineering and
technology are relatively higher than all other job roles across the Malaysia
market. Those working in engineering roles earn, on average, 14% higher and
those in technology such as cyber security and information technology, earn 12%
more than other job functions within the Malaysia market as a whole.
Furthermore, fresh graduates in the engineering and high-tech job roles enjoyed
a 16% higher starting median salary compared to fresh graduates in other
functions. With digital and technological advancements, employers are paying a
premium for talent in these areas.

 

The survey further
revealed that median pay for software engineers/application developers increased
by 17% from the previous year across various levels of seniority, demonstrating
the continuing commitment of Malaysian employers to prepare for Industry 4.0.

Across all industries,
senior legal managers earned 20% more than the market average, whereas
compensation for senior business development managers / strategic planners was 22%
higher than the market average, illustrating the premium employers place on
professionals with specialist skill sets.

 

Rahul
Chawla, Director & Head, Rewards Solutions, Malaysia, Aon, said: “The rewards landscape in Malaysia was very active in 2019. A volatile macroeconomic
and geopolitical environment coupled with a pressing need to deliver
efficiencies compelled businesses to revamp their rewards programmes. In the
last 12 months, organisations have implemented incentive plans aimed at
catalysing transformation and delivering shareholder value. Value creation for
all stakeholders and value sharing amongst key contributors seems to be the
mantra for the coming year”.

About the Aon Malaysia 2019 Salary Increase & Total Compensation Measurement™ (TCM) Survey

The Aon Malaysia 2019 Salary
Increase & Total Compensation Measurement^TM (TCM) Survey is Aon’s
nationwide measure on how organisations are addressing projected salary
budgets, variable pay, cost-saving initiatives, and more. It contains data on key changes in
employee compensation in 2019 and projections for 2020. Data was collected from 320 employers across Malaysia.

About Aon

Aon plc (NYSE:
AON) Aon is a leading global professional services firm providing a broad
range of risk, retirement and health solutions. Our 50,000 colleagues in
120 countries empower results for clients by using proprietary data and
analytics to deliver insights that reduce volatility and improve performance.

 

For further infor­mation on our capabilities and to
learn how we empower results for clients, please visit: https://apac.aonhewitt.com.