Annual wage hike for execs drops to 4.9pct in 2024 - survey

The annual wage increase enjoyed by executives declined from 5.88 percent last year to 4.90 percent this year, according to the latest Malaysia Employers Federation (MEF) salary survey.

Similarly, the wage hike for non-executives also declined, from 5.56 percent to 4.85 percent.

“The survey covers 236 companies from the manufacturing and non-manufacturing sectors, covering 12,882 executives and 25,871 non-executives,” said MEF president Syed Hussain Syed Husman at a press conference today.

The reason for the decline in wage increments was not mentioned.

Syed Hussain (above) also noted that the survey found 88 percent of respondents had granted salary increases to employees this year so far.

The survey results released today for salaries of executives and non-executives were two of five reports launched during the event.

The other three were the Fringe Benefits Survey 2024, Collective Agreements and Awards on Terms and Conditions of Employment 2023, and a report on Flexible Working Arrangements.

Living costs

Asked about the Department of Statistics Malaysia’s (DOSM) 2023 Cost of Living Data which indicated that a person in Kuala Lumpur requires RM1,755 per month for a decent lifestyle, Syed Hussain cautioned against directly comparing wages to living costs.

He said while DOSM’s statistics are valuable, they are unrelated to wage policies.

For starters, he said wages for workers are determined by a company’s ability and employee performance.

“The DOSM study focuses on lifestyle needs, while wages are calculated based on what employers can offer.”

Syed Hussain also argued that lifestyle choices influence living costs.

“If someone lives in Bangsar, drives a Mercedes Benz, and has six children, you can’t compare that to someone living elsewhere with a different lifestyle.

“Obviously, living costs in (other parts of) KL compared to Bangsar will be higher,” he said.

Stagnant wages

According to DOSM, Selangor and Kuala Lumpur are the most expensive places to live to achieve a decent lifestyle.

To achieve a decent lifestyle, one needs at least RM1,755 a month in Kuala Lumpur, and at least RM1,630 in Selangor, the DOSM says, making these states the most expensive places to live in Malaysia.

Selangor tops the charts with the average cost of a decent living being RM5,854 a month per household, where the average household has 3.8 people.

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