More employers are increasing the wages of their employees this year compared with 2020, reflecting a positive business recovery in the country.
The Salary Survey for Executives and Non-Executives 2021 conducted by the Malaysian Employers Federation (MEF) showed that 65.20% of respondent companies granted salary increases either to all or certain executive employees in 2021 versus 58.40% in 2020, while 66.40% granted salary increases to all or certain non-executives in 2021 against 61.70% in 2020.
MEF president Datuk Syed Hussain Syed Husman said, “The average salary increase for executives in 2021 was 4.40%. For non-executives, the average salary increase in 2021 was 4.43%.
Hussain Syed also said the survey forecasted that average salary increase for executives for next year is 4.37%, while that for non-executives is 4.17%.
“Approximately 60% of the companies determined salary increase based on the profitability or productivity level, while more than half of the companies determined the quantum of salary increase based on the market rate,” he said.
As for bonuses, Syed Hussain said the survey showed that 68.30% of the respondent companies granted bonuses to executives and non-executives this year. The forecast for bonus next year is 1.82 and 1.66 months for executives and non-executives, respectively.
“A positive indicator was that the forecast bonus for 2022 was higher than the actual bonus in 2021 of 1.58 months and 1.44 months for executives and non-executives, respectively,” he said, according to The Edge.
Source: HRM Malaysia