Malaysia’s Salaries to Rise by 5% in 2025 as Talent Demand Soars: Mercer Survey

Mercer’s annual Total Remuneration Survey (TRS) projects a steady salary growth in Malaysia, with an overall increase of 5.0% across all industries in 2025. Close to 24% of organizations are planning to expand their workforce, highlighting a growing demand for talent.

Surveying over 680 companies across various sectors, the report reveals a competitive labor market, with a median voluntary turnover rate of 11.8%, prompting many companies to enhance their compensation and retention strategies.

High-demand roles in fields like Cloud Computing, Cybersecurity Architecture, and Electrical Engineering are seeing salary premiums, reflecting the rising value of specialized skills. Additionally, industries such as Energy and Shared Services lead in base pay due to high demand and investment.

Koay Gim Soon, Mercer Malaysia Market Leader, said: “As we navigate through a dynamic economic landscape, it is essential for employers to recognize the evolving nature of the workforce and the diverse needs of individuals. By staying attuned to the market landscape and the pulse of their employees, employers can remain resilient and thrive amidst competitive pressures and market disruption.

The survey also notes the Malaysian government’s minimum wage increase to MYR 1,700 by February 2025, aimed at addressing cost-of-living pressures and ensuring fair compensation while supporting business sustainability.

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