KUALA LUMPUR, Nov 19 — Many companies in the country are not optimistic in forecasting a rise in the rate of salary increase for 2010 amid uncertainties over economic recovery.
Malaysian Employers Federation (MEF) vice president A. Wahab Bakar said a survey conducted by the federation found that companies expected to grant the same rate of salary increase as in 2009.
“Many respondent companies have adjusted the forecast salary increases as well as the bonus payment for 2010 in view of the global economic downturn,” Wahab said at a media briefing on the “2009 MEF Salary Survey for Executives and Non-Executives” here today.
The overall average forecast salary increase for executives in 2010 after taking into account the economy recovery uncertainties was lower at 5.10 per cent compared with actual salary increase of 5.36 per cent in 2009. For non-executives, the number is expected to be at 5.14 per cent for next year, down from the 5.22 per cent in 2009.
According to the survey, the average forecast bonus for executives in 2010 is 1.83 months which is lower when compared to 2.18 months of actual bonus this year. For non-executives, the estimated bonus for next year is 1.73 months, down from 1.91 months in 2009.
For this year, 76.20 per cent of the respondent companies granted bonus to their executives, which was lower compared to 90.40 per cent last year. About 80 per cent of the respondent companies granted bonuses to their non-executives in 2009, down from 88.90 per cent last year.
215 member companies participated in the MEF survey for executives, involving a total of 109 benchmark positions covering 13,046 executives. In the survey for non-executives, 212 companies took part, covering 40,424 non-executives in 99 benchmark positions. — Bernama
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