Expectations around salary increments from employees have declined compared to projections made in late 2024. At that time, 75 per cent of professionals were confident they would receive a raise. However, by June 2025, only 40 per cent had seen an increase in their salary, and just 22 per cent still expect one before the year ends.  

At the same time, salary reductions are becoming more common. Six per cent of respondents in Asia reported experiencing a pay cut in 2025, double the rate anticipated last year. This trend may continue, with 12 per cent of organisations indicating plans to reduce salaries in the second half of the year.  

Projections for raises among professionals in Malaysia appear set to surpass 2024 numbers, with 79 per cent of professionals having already received a raise or still expecting to receive one this year compared to 73 per cent who received a raise in 2024. However, these fall short of initial projections in late 2024, where 90 per cent of professionals we surveyed for the 2025 Hays Asia Salary Guide expected to receive a raise this year. 

Conversely, 11 per cent of organisations in Malaysia expected to decrease salaries for the remainder of 2025, lower than China (18 per cent) but ahead of Singapore (ten per cent), Hong Kong (seven per cent) and Thailand (five per cent). Organisations in Japan were least likely to implement salary reductions, at four per cent. 

“In today’s cautiously optimistic economic climate, the decision by employers to uphold salary increments signals a clear commitment to talent retention,” said Natasha Ishak, Regional Director of Hays Malaysia. “In turn, professionals are revising their expectations conservatively as they navigate these changing times.” 

While salary continues to be a key consideration, work-life balance remains the leading reason professionals across Asia choose to stay with their current employers. Among those not planning to change jobs, 41 per cent cited work-life balance as their primary motivator, an increase from 36 per cent in late 2024. Salary followed closely at 36 per cent. 

Professionals in Malaysia demonstrated clearer preferences. Flexible working arrangements emerged as the most valued aspect of the Employer Value Proposition, with 49 per cent of respondents identifying it as a key reason for staying. This was followed by work-life balance (46 per cent) and benefits such as healthcare and insurance (40 per cent). In comparison, only 34 per cent chose to remain in their roles due to salary packages. 

Among those who had changed jobs this year, the lack of work flexibility was a significant factor, cited by 29 per cent of respondents. This was slightly ahead of poor work-life balance (24 per cent) and second only to limited career progression, which was the leading reason at 38 per cent.  

“While competitive pay remains important, we’re seeing a growing emphasis on holistic benefits, especially those that promote work-life harmony. This shift offers organisations a chance to revisit how they support professionals beyond financial remuneration.” 

“By fostering a culture that prioritises employee wellbeing and flexibility, employers can strengthen loyalty and engagement even when budgets are tight.” 

“For professionals exploring new opportunities, it’s essential to identify what truly matters, be it salary growth, personal flexibility, or long-term career growth. Having clarity on these priorities will empower more informed and confident career decisions.”