MEF Survey: 65% Companies Raised Wages in 2021
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According to the Malaysian Employers Federation's (MEF) Salary Survey for Executives and Non-Executives 2021, more employers are giving salary increases to their employees in 2021 than in 2020, hinting at a positive business recovery in the nation.
65% respondent companies reported salary increase
MEF President Datuk Syed Hussain Syed Husman said that the 27th annual MEF Salary Surveys found that 65.20% of respondent companies granted salary increases to all or certain executive employees in 2021 versus 58.40% in 2020, and 66.40% granted salary increases to all or certain non-executives in 2021 versus 61.70% in 2020.
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Syed Hussain said that in 2021, the average wage increase for CEOs was 4.40%, and the average salary increase for non-executives was 4.43%
According to him, the poll predicts that the average wage increase for executives in 2022 will be 4.37%, while the average wage increase for non-executives will be 4.17%.
He added that about 60% of organisations determined wage increase based on profitability or productivity levels, while more than half of employers determined the quantum of wage increase based on the market rate.
Almost 70% of companies gave bonus to employees in 2021
In terms of bonuses, Syed Hussain said that in 2021, 68.30% of respondent businesses gave incentives to executives and non-executives. The study also predicted that the bonus for 2022 would be 1.82 and 1.66 months for executives and non-executives, respectively.
He noted that an encouraging indicator was that the forecast bonus for 2022 was greater than the actual bonus for executives and non-executives in 2021, which was 1.58 months and 1.44 months, respectively.
More fresh graduates hired
According to the MEF Salary Survey for Executives, 58.20% of responding organisations hired fresh graduates as executives in the last 12 months.
In terms of the types of jobs given to newly-hired graduates, Syed Hussain said the poll revealed that 80.90% of respondent companies offered skilled jobs, compared to 51.80% that offered semi-skilled jobs, and 5% who placed newly hired graduates in low-skilled professions.
212 companies from the manufacturing and non-manufacturing sectors participated in the MEF Salary Survey for Executives, which covered 180 benchmarked positions for 23,448 executives, while 208 companies participated in the MEF Salary Survey for Non-Executives, which covered 66,420 non-executives with 129 benchmarked positions.
Source: BERNAMA
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