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Fewer Malaysian companies offering pay rise to employees |
Cindy: Fewer Malaysian companies offering pay rise to employees
Posted on: November 24 2009
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Fewer companies in Malaysia are offering employees salary increments this year.
According to the The Star, the Malaysian Employers Federation (MEF) salary survey revealed that only 58% of 212 companies polled in Malaysia gave increments to non-executives, compared with 83% that did last year.
On the other hand, 52.6% of 215 companies giving their executives increments compared with 79.5% last year.
This trend is consistent with the economic downturn faced by companies since mid-2008, said MEF vice-president Abdul Wahab Abu Bakar.
“Gone are the days of a rigid structure in salary increments,” he said during the launch of the MEF Salary Survey for Executives and Non-Executives 2009. “Salaries today have to be linked to productivity in light of the economic downturn.”
Furthermore, the survey findings also showed that the amount of salary increase given to employees has decreased. The average salary increase was 5% for both executives and non-executives, compared with 6% last year.
The common practice of collective agreement (CA) negotiations once every three years is restrictive and unable to adapt in an economic slowdown, said Wahab, stressing the need for a more progressive labour legislation that will “respond to the cycle of the economy”. Since the Malaysian labour laws laid down in the 1950s was “very archaic”, he added the new CA would both benefit businesses and maintain equity for employees.
“We cannot continue to add on to costs while productivity may not increase as much. We are now in the global village, and whatever we do has got to be competitive with the rest of the world, otherwise we cannot survive,” Wahab said.
The survey was conducted between May and September 2009.
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