ONLY 49 per cent of Malaysian workers are satisfied with their current salary, although the majority of them admit that the pay rate is fair for the role they are taking on.
The latest findings from the Salary Pulse 2026 report by Jobstreet by SEEK reveal that 81 per cent of workers consider their salaries to be fair, but there is a significant gap between the fairness of market value and what employees feel in terms of actual appreciation at work.
The study, which involved 1,010 local workers aged between 18 and 64, shows that paying according to market benchmarks alone is no longer enough to make employees feel appreciated.
In fact, among employees who consider their salary to be “fair”, less than half (41 per cent) said they were truly happy with their remuneration because they began to evaluate salary alongside other factors such as workload, recognition and career advancement opportunities.
Jobstreet by SEEK Malaysia Managing Director, Nicholas Lam, said this study proves that employees now make a big difference between being paid fairly and feeling genuinely appreciated by their organisation.
“Competitive pay will always be important, but it is no longer the only metric used by employees. They want the pay they receive to reflect individual contributions, growth opportunities and career progression.
“For employers, compensation now encompasses aspects of communication, recognition and trust, not just numbers,” it said in the report.
The report also revealed important implications for talent retention, with employees who are satisfied with their pay being three times more likely to be motivated at work, while those who are dissatisfied are 2.5 times more likely to look for a new job.
“However, Malaysian workers insist they will not sacrifice their self-worth for a higher salary.
“While 19 per cent would accept a lower position for a 10 per cent pay increase, only three per cent would be willing to work for a company with a toxic work culture.
“In terms of pay increases, 56 per cent of employees have received increases in the past year, with most receiving modest increases of up to five per cent,” he said.
The study found that employees value performance-based increases more (65 per cent satisfied) than company-wide adjustments (52 per cent satisfied), thus showing the importance of recognising individual contributions.
“In addition, the level of confidence to discuss salary issues is still low, with only 40 per cent of employees feeling comfortable asking for a salary increase.
“However, 78 per cent of those who dared to ask for a salary increase reported successfully obtaining it,” Lam said. – July 16, 2026
