MEF Survey: Average Salary Increase And Bonus On The Downtrend In 2009

There is an downward trend in companies granting salary increases and bonuses for their employees in 2009, in view of the global economic uncertainties, a survey by the Malaysian Employers Federation (MEF) indicated.

"Many respondent companies have adjusted the forecast salary increases and the bonus payment for 2009 in view of the global economic downturn," the MEF president, Datuk Azman Shah Haron told a media briefing on the 2008 MEF Salary Survey for Executives and Non-Executives here Tuesday.

The overall average forecasted salary increase for executives in 2009 after taking into account the global economic uncertainties, was lower at 5.53 percent compared with an earlier forecast of 5.78 percent.

As for non-executives, the number is expected to be at 5.59 percent for next year from the 5.85 percent estimated earlier.

"The actual salary increase for 2008 was at 6.09 percent for executives and 5.69 percent for non-executives.However, the numbers have been adjusted due to the sharp increase in fuel prices in June this year," he said.

Azman said the forecasted salary increase for executives in the manufacturing sector was lower at 5.50 percent compared with the 5.56 percent in non-manufacturing sector.

The MEF survey, completed in August this year, saw the participation of 202 member companies. It covered 15,163 executives and 43,499 non-executives.

Azman said that generally, employers needed to retain the talent within the companies and would cut other costs in tightening their belts during the slowdown.

"Retrenchment would be the last option," he said.

In terms of bonus, 72.1 percent of the respondent companies estimated it would be granted to non-executives in 2009 while 59.8 percent forecast the payment for executives.

However, the average forecasted bonus payment for non-executives in 2009 after taking into account the global economic downturn, was lower at 1.78 months compared with the 1.99 months estimated earlier.

Meanwhile, the bonus payment for executives will be at 1.98 months in 2009 as against 2.10 months forecasted before.

Azman said about 90 percent of the respondent companies granted a bonus to their employees this year with the average contractual bonus for non-executives at 1.74 months and 1.85 months for executives.


Source: Bernama.com @ Money3.com.my
Date: 09/12/2008