The real money value of salary increments in 2020 may be lower than previous years. Human resource consulting firm ECA International has released a report that indicates that while salaries in Malaysia will see a substantial jump next year, it will be matched by a sizable inflation rate.<\/p>\n
Malaysian workers are set to be some of the few that see their real salary increase drop. According to the report, the real salary increase will decline to 2.9% from 4.0% in 2019.<\/p>\n
This is not to say that increments will be smaller. Lee Quane, Regional Director \u2013 Asia at ECA International explains that the salary increase is likely to stay 5.0%. However, his researchers foresee that inflation will go from 1.0% to 2.1%; which is where the negative impact on real salary increment comes from.<\/p>\n
The change in rate has sent Malaysia out of the top ten countries for salary increments; which is currently lead by India, Vietnam, and Indonesia.<\/p>\n
Despite this reduction, the increase is still double the global average of 1.4%; and is far ahead of the 1.1% increase predicted for Europe.<\/p>\n
The real salary increase takes into account the forecast salary increase determined by a survey of 307 multinational companies. It also subtracts the expected inflation for the surveyed countries in order to account for the change in purchasing power change.<\/p>\n