PETALING JAYA: The projected 5% increase in wages for employees across all sectors is great news, but it is still not good enough as it does not keep up with inflation and the cost of living, say workers.
With taxes taking a part of such increments, it will not be enough to cope with the rising cost of everything, they said.
“Employee satisfaction with regard to their pay can differ. While a 5% to 8% raise is pretty standard, it might not be enough to keep pace with inflation and increasing expenses,” said data analyst Ai Ran, 31, from Kuala Lumpur.
A 5% raise will not fully cover the rising cost of living, she said, adding that employees who need more money might start looking for a new job.
“Non-monetary benefits like flexible work hours or better job security can be more for those working odd shifts and looking for a better work-life balance,” she said.
Bank manager Siti R., 50, from Kuala Lumpur, said the 5% raise would not account for much after taxes and Employees Provident Fund (EPF) contributions, leaving employees with just a 1.5% increase in take-home pay.
“I think this is across the board. Many in the private sector are not satisfied with their salary because it is simply not enough to cover monthly expenses, which are always expanding.
“Everything costs money. Non-monetary benefits will not pay for expenses,” she said.
International school teacher Nabisha Gulamnabi, 27, from Ampang, also said the 5%, while helpful, was insufficient to match inflation and rising living expenses.
“The 5% increase helps employees manage major expenses and shows the employer’s acknowledgment of financial pressures, although it may not fully address rising costs,” she said.
IT specialist Jeevan Sivananthan 35, from Klang, is one who would be happy with a 5% raise. He said it would give him a breather in planning his budget and retirement, while allowing more for emergencies and other long-term goals.
“The current salary may not be sufficient to keep up with inflation and the cost of living. Expenses such as housing, utilities, groceries, healthcare, and education tend to rise continuously.
“It might not be enough to meet the growing needs of a family. The cost of living is increasing at a pace that makes it challenging to save for the future or achieve long-term financial goals,” he said, adding that he welcomed the increment.
On non-monetary benefits, Jeevan acknowledged that flexible work options can help with work-life balance, while job security provides stability, especially in uncertain economic times.
