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

Singapore adults expect 35% pay raise after bachelor's degree

Year-end is coming fast like a bullet train. The 4-digit number is changing yet another time and very soon working adults would be expecting raise in their salary comes January. What's your expectation - 5%, 10%? I can bet all my money on you that you are expecting the highest possible.

How about a 35% pay rise? Sounds good?

In Singapore, money seem to be the biggest motivator for many to upgrade their education level. But then I suppose it is also the case in many other countries.

A quarter of Singapore adults believe they deserve 50% pay raise after first degree

Adult learners expect 35% pay raise after first degree

Singapore adult learners expect an average pay raise of 35% after attaining their first Bachelor degree, while almost one in four (23%) believed their first degree entitles them to an average increase of 50% or more in wages.

According to findings from the 2012 JobsCentral Learning Rankings & Survey, a similar portion of those surveyed (24.6%) expect to get a 50% increase and above in wages when they attain post-graduate qualifications such as Masters, PhD or MBA.

“Most employers acknowledge their employees’ new qualifications but will not automatically increase pay,” says Lim Der Shing, CEO, JobsCentral Group.

“Usually a pay increment will only be given if the employee is outperforming, underpaid or taking on new duties. So it is important to discuss wage expectations with your employer before you embark on a costly education programme,” he added.

The survey also found that the top course of study was business studies/ management, followed by finance/ investment in second place and accounting in third. Hospitality/ tourism/ F&B came in fourth position, while sales/marketing came in a close fifth.

Alright, nobody seems to like engineering courses in Singapore.


Source: Yahoo News

Cuepacs wants upgrade for 50,000 civil servants

Cuepacs was recently reported to have submitted a proposal stating it wants the grades of about 50,000 civil servants in the technical, agriculture and forestry groups to be upgraded.

Image credit: inilah.com

Cuepacs secretary-general Lok Yim Pheng said civil servants in Grade G17, G22 and G26 have been proposed to be upgraded to G27, G32 and G36 because they are equipped with academic qualifications. Lok said it would be in line with the government's efforts to produce skilled labour so as to fulfill the government's aspiration to become a high income nation by 2020.

"As such, workers with the necessary skills, experience and qualification must be recognised," she told Bernama here today adding that the proposal had already been submitted to the Chief Secretary of the Government Tan Sri Mohd Sidek Hassan, in March. Lok added that to ensure the upgrading proposal was implemented, Cuepacs hoped a special commission would be set up to carry out a holistic study of the civil service.

Cuepacs has also proposed to the government to review the salary scale of civil servants with a view for better remuneration, she said. [sourced from Bernama, 30 May 2012]


TheGreenMechanics two cents:

While I am not against any upgrading of grade to the deserving workforce, quick succession of salary revisions is a bit too much. Revisions after revisions in a span of only several years give impression that we are not doing it holistically, but rather based on 'after-thought', reactive, and short-sighted.

What will this mean to the general consuming public? Not good. There will be drastic increase in goods and service prices - several increases in a short span of time. Not only that. To the neutral observer, such shortsightedness by those responsible will demoralise the counterparts in the private sector.

Salary adjustment (not including annual increment) must commensurate with national productivity, just like a capability of an enterprise to remunerate the workers is based on its capability to generate fund (and profit). Why should it be any different?


One change too many?

Not too long ago, civil servants had every reason to celebrate with the salary revision of between 7.5% and 35% with additional 20% on top of that for PDRM and ATM. Latest in the news was that civil servants will get another adjustment of (March 2012 announcement) between 7% and 13% under the Malaysian Remuneration System (SSM). Example of salary restructuring in the police force (Appendix B). There were other minor adjustments between these two major ones.

No doubt, there will be more to it between now and the next general election.