PETALING JAYA: Company bosses paid out higher salaries and more bonuses to their workers this year compared to previous years.
This was revealed in a survey by the Malaysian Employers Federation, which covered executives in 215 companies and non-executives in 212 companies that were involved in a wide spectrum of economic activities.
MEF president Md Jafar Abdul Carrim said 94.8% of the companies surveyed gave out an average increment of 5.89% to their executives. Some 95.7% of the companies gave an average increment of 5.26% to their non-executives.
A majority of the companies paid out contractual or discretionary bonuses or both, Md Jafar told a press conference to announced the findings of the MEF Salary and Fringe Benefits Survey for Executives and Non-Executives 2004 here, yesterday.
The percentage of companies granting salary increase is higher compared to last year while the number of companies that did not grant any salary increase was reduced by half in 2004, he said.
He said the survey revealed that 74.3% of the companies implemented the Performance-Linked Wage System for executives and 67% used the PLWS for their non-executives.
In determining the increment, the majority based the salary increase on the performance of the employees and that of the company, he said.
More companies now prefer this system, which has become the global trend, rather than the traditional criteria of consumer price index and seniority.
MEF has always been promoting the implementation of productivity-linked wage system in order for us to maintain and enhance the countrys competitiveness, he said.
Md Jafar said employers could not sustain the rate or salary increase of the early 1990s as the cost of doing business has increased.
He said half of the employers in the survey forecasted that they would be granting the same rate of salary increases while 14.2% of the employers anticipate higher bonus payments.