Fair pay alone is no longer enough to make Malaysian employees feel valued, according to Jobstreet by SEEK’s Salary Pulse 2026. While most workers believe they receive fair compensation, many now judge their salary by more than market rates. They also want recognition, career progression and a positive workplace experience.
Based on responses from 1,010 employed Malaysians aged 18 to 64, the report found that 81% of employees believe they are paid fairly for their current role. However, only 49% say they are satisfied with their salary. The findings highlight a growing gap between pay fairness and employee satisfaction.
The report suggests employers need to rethink how they approach remuneration as employee expectations continue to evolve.
Employees Want More Than Competitive Salaries
The study shows that employees no longer judge salaries by market benchmarks alone.
Among workers who believe their pay is “about right”, only 41% say they are happy with their salary. Instead, many consider whether their pay reflects their workload, recognises their contributions, supports career progression and helps them achieve the lifestyle they want.
The findings suggest salary has become more than financial compensation. Employees also see it as a sign that their organisation values their work and supports their growth.
“Our research shows employees are making an important distinction between being paid fairly and feeling genuinely valued,” said Nicholas Lam, Managing Director of Jobstreet by SEEK Malaysia.
“Competitive salaries will always matter, but they’re no longer the only measure people use. Employees increasingly want their pay to recognise the contribution they make, reflect opportunities for growth and give them confidence they’re progressing in their careers.”
Lam added that remuneration now depends as much on communication, recognition and trust as it does on salary levels.
Salary Satisfaction Drives Engagement
The report also links salary satisfaction to stronger employee engagement.
Employees who are happy with their salary are almost three times more likely to feel motivated and willing to go above and beyond at work. In contrast, dissatisfied employees are 2.5 times more likely to consider changing jobs.
These findings suggest that employees’ perceptions of their remuneration can influence both productivity and retention.
Lam said employers should treat salary discussions as opportunities to build trust instead of routine administrative exercises.
“When people understand how their salary decisions are made–and what they need to do to progress–they’re more likely to stay engaged, even when conversations are difficult,” he said.
Employees Won’t Sacrifice Workplace Values
Although many Malaysian employees would accept certain trade-offs for higher pay, the research shows they still place strong importance on workplace culture.
Nearly 19% of respondents would accept a lower job title for a 10% salary increase. Meanwhile, 21% would agree to remain on call outside working hours for the same pay rise.
However, only 3% would work for a company with a toxic workplace culture in exchange for that increase. Likewise, only 8% would join an organisation whose values conflicted with their own.
These findings reinforce insights from Jobstreet by SEEK’s earlier Workplace Happiness Index, which identified purpose and workplace culture as major drivers of employee satisfaction.
Performance-Based Pay Has Greater Impact
More than half (56%) of Malaysian employees received a salary increase during the past year.
Among them, 56% received increments of up to 5%, while 30% received increases of 6% to 10%.
However, employees also care about why they receive a pay increase.
Among those who received performance-based increments, 65% said they were satisfied with their salary. By comparison, only 52% of employees who received company-wide increases reported the same level of satisfaction.
The report suggests employees value rewards that recognise individual performance more than standard salary adjustments.
Many Employees Still Avoid Salary Conversations
Despite recognising the importance of discussing pay, many Malaysians remain reluctant to start those conversations.
Only 40% say they feel comfortable asking for a salary increase. Meanwhile, 20% say they feel uncomfortable raising the issue.
However, employees who ask often see positive results.
Among workers who requested a pay rise, 78% received one. The report also found that repeated salary discussions help employees build confidence and advocate more effectively for their career progression.
Helping Employees Feel Valued
Jobstreet by SEEK recommends that employers take a broader approach to remuneration.
First, organisations should ensure salaries reflect employee performance, contributions and long-term growth instead of relying only on market benchmarks. Next, they should explain how salary reviews and promotion decisions work to build trust and reduce uncertainty.
In addition, employers should encourage regular conversations about pay instead of limiting them to annual reviews. Finally, they should combine remuneration with career development, recognition and meaningful feedback.
As employee expectations continue to change, the report suggests employers need to offer more than competitive salaries. Companies that combine fair pay with transparency, recognition and career development will likely attract, engage and retain talent more effectively.
The full Salary Pulse 2026: Malaysia report is available for download [here].
