MEF: Lower increment, bonus trend to continue in 2021

KUALA LUMPUR: Executives and non-executives will likely see the trend of reduced increments and bonuses to continue into 2021 based on the Malaysian Employers Federation (MEF) salary surveys for executives and non-executives.

MEF president Datuk Dr Syed Hussain Syed Husman said only 58.4% of surveyed companies granted a salary increase to their executive workers this year compared with 88.3% in 2019, while 61.7% of companies granted a salary increase for non-executives (87.6% in 2019).

The average salary increase forecast for executives and non-executives was also lower in 2020 compared with 2019, at 4.82% (5.15% in 2019) and 4.79% (4.96% in 2019), respectively.

“The results were expected due to the adverse impact of the Covid-19 pandemic. The trend is expected to persist into next year as the forecast average salary increase for executives and non-executives in 2021 was lower at 4.59% and 4.57%, respectively, ” he said in a statement yesterday.

The 26th edition of the MEF salary survey covered 179 benchmarked positions of 20,733 executives, while the non-executives survey covered 64,625 non-executives with 138 benchmarked positions.

Syed Hussain said the forecast bonus for executives and non-executives in 2021 also dropped to 1.75 and 1.57 months, respectively, compared with 1.94 and 1.65 months of bonus granted in 2020.

He said during the movement control order (MCO), respondent companies operated at 60% to 70% of the workforce capacity, which rose to 80% for all levels of executives during the conditional MCO (CMCO).

The workforce capacity utilisation for non-executives – ranging from general labourer/unskilled employees to supervisors – was at 56% during the MCO, then rose to 77% during the CMCO. — Bernama

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