Employees' salaries must be increased by 6% following GST implementation

Why not.

This is the time to start raising the salaries of employees as the sentiment would be that, it is in anticipation of the GST implementation. You do it any other time and people (unscrupulous traders/service providers) start to increase the prices of goods or services, giving this excuse: " you just had your salary revised; you can afford it".

Do it in the name of "mitigating the effect of the GST implementation" and people will be skewed to think that increase of prices of goods would be a 'double blow' and therefore would become an unlikely scenario.

Double blow because -
Firstly the GST, subsidy cut, revision of electricity tariff,
Secondly increase in the prices of goods (anticipated).

Daily Express, January 8, 2014

KPMG says 6% would be a good starting point


KPMG Malaysia, a global audit, tax and advisory services company, is urging both the public and private sectors to gradually increase employees' salaries, in view of the Goods and Services Tax (GST) that will be implemented in April 2015.

Newly-appointed Managing Partner Johan Idris suggested a six per cent increase in employees' salaries per annum, to help tide over the high cost of living in Malaysia.

"Six per cent would be a good example to begin with, especially after the GST implementation, new electric tariffs, petrol subsidy cuts and new toll rates," he told reporters, after the launch of the second-edition of the Study on Non-Executive Directors 2013 — Profile and Pay publication.

Johan said that the GST implementation was inevitable, as Malaysia was a developing and a highly-subsidised country.

"As a developing country, many foreign companies come in to conduct business here, and they also enjoy the same cost structure like the locals.

"So, by implementing the GST, which will also be levied on foreign companies and expatriates here, the government can spend revenue accrued appropriately, to help balance its budget," he said.


Source: The Edge Malaysia

Are our ministers salaries too high?

Last week, the media - mainstream and online portals - were filled with mixed views of Selangor leaders salary hikes. Some said they were justified, but many disagree and they heavily criticised the move by the opposition-led richest state in Malaysia.


How much will Selangor ministers and assemblymen get after the adjustment. Source: The Star


While not interested in politics, let me draw your attention to another move by oil-rich, biggest state in Malaysia, Sarawak. You can read about it here.


In May 2013, the Sarawak ministers and assemblymen approved a whopping three-fold (Selangor increased theirs by two-fold) raise for themselves and administrators of the state assembly. The Star Graphics


To compare, our nearest neighbour, Singapore pays its Prime Minister a whopping SGD$2.2 million annually, that's SGD$183,000 per month or about RM471,000 monthly. Then again, Singapore pays it ministers  and leaders top money and the city state is in a league of its own when comes to country leaders salary.

In no way we should emulate Singapore's remuneration system.

I'm just saying I'm bemused by how people react to Selangor ministers pay hikes.


HAPPY MONDAY!

Sarawak Ministers & Reps increase own pay three-fold

Seen as appropriate, Sarawak ministers and assemblymen will get an astronomical pay hike of 200% with the approval of the Remuneration, Pension and Gratuities Bill 2013.

With the last revision being in 1992, the Reps salary increment of three-fold is about 9.5% annually, which is still very high. But they are backdating this to Jan 1, 2012, so effectively it is 10%,

Okay, Sabah maybe looking at doing the same and it won't be too surprising anymore now, would it?

Remuneration to be backdated to Jan 1, 2012. Star Graphic.


Sarawak ministers, assemblymen get three-fold pay hike

The state’s ministers and assemblymen have approved a whopping 200 per cent raise for themselves and administrators of the state assembly on May 21.

Under the new remuneration scheme, the chief minister’s salary will increase from the present RM13,000 to RM39,000 per month while the pay of the deputy chief ministers jumps to RM35,000 from the current RM11,500. Senior ministers will receive RM30,000 in monthly salary from the present RM9,000, while ministers will see an increment from RM9,000 to RM27,000. The salary of assistant ministers rises from RM7,000 to RM21,000.

The basic allowance for the members of the State Legislative Assembly (DUN) will increase from RM4,500 to RM15,000 while political secretaries will see an increase in allowance from RM3,000 to RM9,000.

In addition, DUN speaker will receive a salary increase equal to the senior minister while the deputy speaker will be on par with the assistant minister.

The new remuneration scheme, which will be back dated to January 1, 2012, was implemented after the Members of Administration and Members of Dewan Undangan Negeri (Remuneration, Pension and Gratuities) Bill, 2013 was passed without any objection at the DUN sitting here yesterday.

The new pay and allowances will increase the wage bill for the state assembly to RM17 million annually. Second Finance Minister Dato Sri Wong Soon Koh who tabled the bill said the new ordinance seeks to repeal the Members of Administration and Members of Dewan Undangan Negeri (Remuneration, Pension and Gratuities) Ordinance 1980 which came into force on July 1, 1980.

“The need to revise and amend the current amount, rates and terms and conditions of the monthly allowance, salary and such other allowances and benefits is to commensurate with their status and responsibilities in the society, having regard to the current rate of inflation, standard of living and other relevant factors,”Datuk Sri Wong Soon Koh, Second Finance Minister.

TheGreenMechanics: Noted. Just be prudent, we are all tax payers here.

Refer: The Borneo Post

Civil servants to get one annual increment on July 1, 2013

In summary, civil servants get to enjoy:

Annual increment      : Will be paid early, 1st July 2013
People affected         : All 1.4mil civil servants
Increment quantum  : RM80 to RM320 (equivalent to 1 year annual increment)
Total expenditure     : RM1.5 billion
Officers whose salaries have reached ceiling  : To enjoy similar benefits, through special mechanism
Officers affected by this mechanism               : 182,434

Also, salary scale of police (PDRM) and armed forces (ATM) personnel has been raised to be on par with that of the civil service.

PM Datuk Najib Razak addressing the civil servants at the gathering in Putrajaya.

As reported by The Star:

PUTRAJAYA: All civil servants will receive a salary movement benefit of one annual increment, to be paid out on July 1 this year.

Prime Minister Datuk Seri Najib Tun Razak, who made the announcement, said this would mean every civil servant would receive between RM80 and RM320.

"This measure will involve an expenditure of RM1.5bil," he said at the "Transforming the Civil Service, Realising Vision 2020" gathering here.

The prime minister also said that effective Jan 1 this year, three additional annual increments would be provided after the maximum salary on the salary schedules.

This will benefit some 180,000 civil servants. According to Bernama, the initiatives were part of the New Remuneration System, which would now be known as the Transformative Remuneration System (SST).

Najib said that in the event there was no salary adjustment or review to ensure that civil servants remained productive and performed well, the government agreed to give a special salary movement of three per cent to those on the maximum salary, provided they met the conditions of the stipulated annual salary movement and performance.

The prime minister also had good news for the almost 50,000 contract officers whose service would end on Dec 31 this year. He said their service would be extended by another year pending an overall study. -- TheStar Online