The average salary increase for non-executives in 2013, at 6.7 percent was slightly higher than that of the executives at 6.31 per cent due mainly to the implementation of the minimum wage policy. It was also revealed that both the executives and non-executives positions experienced higher percentages of the average salary increase as compared to the same corresponding period in 2012.
Speaking at the launch of MEF’s latest publications in Petaling Jaya today, Malaysian Employers Federation (MEF) President, Y. Bhg. Tan Sri Azman Shah Dato’ Seri Haron said that the overall average forecasted salary increase in 2014 for both executives and non-executive employees is lower than the salary average increase in 2013, with executives at 5.63 per cent and non-executives at 5.65 per cent respectively. The lower forecast was attributed mainly to the uncertainty in the world market and employers adjusting to the full impact of minimum wages implementation. The MEF salary survey for executives was participated by 257 member companies. The salary data was collected from 13,568 executives covering 196 benchmark positions.
“The MEF Salary Survey for Non-Executives 2013 found that 82 per cent of participants, do not apply for any deferment on the implementation of national minimum wages. An average of 27 percent of the local employees was affected by the implementation of national wages, as compared to 65.2 percent of foreign workers. Half of the companies surveyed further revealed that they provided training to upgrade the skills of their foreign workers as a measure in coping with the higher cost of implementation of national wages for foreign workers on January 1st 2014”.
In terms of bonus payments, the MEF salary surveys highlighted that the average forecasted bonus for executives for 2014 was 2.21 months. This is lower than the 2.26 months of actual bonus granted in 2013. The forecasted bonus for non-executives was 2.13 months for 2014 which was higher than 2.05 months of actual bonus in 2013.
The Malaysian Employers Federation (MEF) launched its 19th edition of the MEF Salary Surveys for Executives and Non-Executives 2013. In addition, MEF also launched the 8th edition of the MEF Analysis for Collective Agreements and Awards on Terms and Conditions of Employment 2012, and the MEF Survey on Fringe Benefits. The launching ceremony was also witnessed by MEF Council Members Tan Sri Dato’ Mohd Noor Ismail and Dato’ Dr Syed Hussain Syed Husman, as well as the Executive Director Hj. Shamsuddin Bardan.
The MEF Fringe Benefits Survey revealed that 49.4% and 56% of the respondent companies provided retirement benefits to the executives and non-executives respectively. A total of 81% of the respondent companies contributed above the statutory rate to the Employees Provident Fund (EPF) for executives and 78% of the respondent companies contributed above the statutory rate to the EPF for non executives. The contribution rate above the EPF statutory was between 13% to 16%.
For further information, contact the MEF Secretariat at 03-7955 7778.