KUALA LUMPUR, Nov 27 — Fewer employers granted salary increases to their employees this year though the quantum of increases were slightly higher, revealed the 2019 MEF Salary Surveys for Executives and Non-Executives.

MEF president Tan Sri Azman Shah Haron, who launched the latest MEF publications here today, stated that 88.3 per cent of respondents granted salary increase to executives compared to 92.4 per cent in 2018, while it was 87.6 per cent for non-executives (92.7 per cent in 2018).

“However, the average salary increase for executives and non-executives in 2019 was higher at 5.15 per cent and 4.96 per cent respectively as compared to 4.88 per cent for both in 2018.

“The overall average forecasted salary increase for executives in 2020 of 5 per cent was slightly lower than the actual average salary increase of 5.15 per cent in 2019, and 5.01 per cent in 2020 (4.96 per cent in 2018) for the non-executives,” said Azman Shah in a statement released later.

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He said in terms of bonus, 78 per cent of respondent companies granted bonus to all executives similar to 2018. For the non-executives it’s slightly lower at 76.8 per cent compared to 78.7 per cent in 2018.

The executives’ average forecasted bonus of 1.9 months for 2020 was similar to actual bonus in 2019 and it was slightly higher for the non-executives with 1.79 months compared to the 1.67 months of actual bonus in 2019, he said.

Azman Shah said about 52 per cent of the respondent companies implemented productivity or performance-linked wage system (PLWS) for their employees.

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He said more than 90 per cent indicated that the main reasons for implementation were to reward good employees and improve productivity (more than 80 per cent), followed by enhancing the company’s competitiveness (72 per cent), and to motivate the average performing employees (68 per cent).

Both the Salary Surveys were participated by 252 companies from manufacturing and non-manufacturing sectors.

The executives report covered 151 benchmarked positions of 18,782 executives, while the non-executives report covered 48,098 non executives with 109 benchmarked positions.

The MEF Salary Surveys also included a new section on internship wherein it was revealed that 88 per cent of respondent companies were of the view that such programmes generated more employable graduates. — Bernama