Thursday 28 Mar 2024
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Employers are taking into account the implementation of Goods and Services Tax (GST) when they review the salary of employees for next year, according to a survey by the Malaysian Employers Federation (MEF). The MEF’s latest salary survey shows a slightly higher forecast in salary increments for next year.

 

Average salary increase for executives is expected to rise to 5.89% in 2015, from 5.53% this year; and for non-executives to rise to 5.78% in 2015, from 5.43% in 2014, says the survey. The MEF, in a statement, says some 49.5% of the participating companies will take into account the implementation of GST in formulating employees’ salary increase for 2015. In addition, 48.4% of the participating companies will also take into account the GST, which will be implemented on 1st April 2015, in determining their non-executives’ salary increase for 2015. But for bonuses, the average forecast for executives next year is 2.19 months, slightly lower than the 2.20 months of actual bonus granted in 2014. No reason for this decline is given.

 

MEF president Tan Sri Azman Shah Datuk Seri Haron said: “The survey, the 20th edition in the series, also included a survey on employees’ skills development, whereby it was revealed that 59.3% of the surveyed companies indicated that their newly recruited executives lack leadership skills, followed by the lack of job specific skills (58.2%) and English oral communication skills (55%).”

 

For the newly recruited non-executives, 56.6% of the participating companies say their non-executives lack technical skills, followed by English oral communication (53%) and job specific skills (53%). 

 

The MEF says its surveys are not only meant for the use of human resources and industrial relations practitioners, but also for the reference of the government. It notes that the Prime Minister has often referred to the MEF data for policy formulation.

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