Most Malaysian employers plan to award 3% to 6% salary increments-Hays

(Mar 21): Almost half, or 46% of Malaysian employers surveyed by professional recruiting group Hays Plc expect to award salary increases of between 3% to 6% during their next salary review.

According to the 2017 Hays Asia Salary Guide, 27% of employers in  expect to award increases from between 6% and 10%; 9%  plan to award over 10% increments, 13% will look to award up to 3% while 4% will award no increase.

The annual Hays Asia Salary Guide, now in its tenth year, highlights salary and recruiting trends in , Hong Kong, Japan, Malaysia and . The guide draws on research from more than 3,000 employers representing six million employees.

During their last review period, 50% of employers in Malaysia awarded increases of also between 3% and 6%.

“Malaysia is a resourceful nation, but given the uncertainties in the global and regional climate, employers are taking a moderate approach to salaries” said  Regional Director of Hays Malaysia Tom Osborne in a statement today.

In terms of intended salary increases across the region, Hong Kong (49 %) and Singapore (46 %) will offer between 3% and 6%, China (45%) will increase from between 6% and 10 % with Japan (60%) offering up to a 3% increase.

From the Malaysian employees perspective, 31% of respondents expect to receive an increase from 6 to 10% during their next review while a further 19%  will be expecting an increase of more than 10%. 

“Respondents in Malaysia wanting a salary increase above what employers are planning to award are advised to do their homework and know why their performance merits a larger increase

“Candidates also need to keep up with economic news as well as keeping abreast of market conditions to ensure their expectations are managed accordingly,” said Osborne.

Meanwhile, 7% of employees in Malaysia are not expecting a pay rise at all with 29% expecting an increase from between 3% to 6% and 14%  up to 3%.

As for bonuses, 66% of employers in Malaysia intend to award bonuses to all employees in the coming year, while  22% intend to award bonuses to only some employees.

Of the employers in Malaysia paying bonuses, 33 % expect bonuses to be worth from 11%  per cent to 50%  of staff salary; 29%  up to 10% of staff salary and 18% from 51%  to 99% of staff salary. Another 20% of employers in Malaysia expect to pay bonuses worth 100%  of staff salary.

Across all countries in the region, bonuses were most commonly related to company performance (88 %) or individual performance (84%). Only 10% of staff bonuses were guaranteed. A further 34% of bonuses were related to team performance and a small 2% to hours billed.

In Malaysia, 92% of employers offer staff benefits in addition to salary/bonus. Most commonly provided is health/medical benefits (89 %), car/car allowance (57 %), life assurance (49 %), club/gym membership (17%) and hardship allowance (15%).

Source: The Edge Markets

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