Thursday November 29, 2007
MYT 6:53:45 PM
Less pay, bonuses for employees next year
PETALING JAYA: Employees may not enjoy the same salary increase and bonuses they received this year come 2008.
This was revealed in the Malaysian Employers Federation (MEF) Salary and Fringe Benefits Survey for Executives and Non-Executives 2007 here Thursday.
Speaking during a conference, MEF president Datuk Azman Shah said this was due to various uncertainties in the global market.
Increasing oil prices and costs, coupled with business uncertainties in the global market, are making a huge impact.
Our findings have forecast that both salary increase and bonuses for executives and non-executives may not match that of 2007, said Azman.
The survey was carried out among 233 companies nationwide who are members of the MEF.
Azman said on average, employees were looking at a 5.74% (non-executive) and 5.69% (executive) salary increase next year compared to 6.25% and 5.77% respectively this year.
Even the average forecast bonus in 2008 for non-executives and executives is lower by 0.26 months and 0.31 months respectively compared to 2007, he said.
There was, however, some good news for employees in several industries.
The survey forecast that executives in the construction, banking, petroleum, electrical and diversified industries will receive a high salary increase, as will non-executives in diversified, wholesale, business services, electrical and petroleum industries.
Azman said the survey also found more companies adopting performance-linked wage systems, rather than just focusing on seniority.
However, he warned that a high monthly turnover of employees could be expected next year.
He attributed this to the tightening of markets, more professionals being snapped up by foreign firms and a surplus in foreign workers.
Azman later launched two MEF publications - The Analysis of Collective Agreements and Awards On Terms and Conditions of Employment 2006; and Leave and Absenteeism in Employment (Cases, Commentary and Materials).