The main components that shall form the remuneration of Directors and Senior Management are set out below:-
1. Components & Description
a. Salary: Monthly payment to Directors which forms basic salary;
b. Bonus: Performance-based component that may be paid in the form of cash or shares in talent retention of Executives for exceeding their expectation;
c. Benefit-in-kind: Fringe benefits inclusive usage of Company vehicles, medical insurance and clothing allowances;
d. Directors Fees: Fixed retainer fees to Non-Executive Directors for their contribution;
e. Meeting allowance : Allowances to Non-Executive Directors for attending during the AGM or EGM.
2. The Types of General Employees Remuneration:
a. Travel & meal allowance (outstation or oversea);
b. Uniforms & protective gears (googles, shoes or gloves);
c. Free lunch meal or dinner;
d. Family benefits (company doctor, driver or security);
e. Reimbursement (client’s luncheon, dinner or entertainment);
f. Car & housing loan subsidy;
g. Optical and body medical checkup;
h. Company’s home with fully furnish for expatriate;
i. Staff purchase (higher discounted rate);
j. Insurance with protective benefits.
3. How OT hours are calculated based on Seksyen 60 (3) & Seksyen 60 (1), Employment Act 1955:
a. Normal working day (1.5)
Basic pay/ 26 days X 1.5 X hour of works
b. Working on Off-day (2.0)
Basic pay/ 26 days X 2.0 X hour of works
c. Working on Public Holiday
Basic pay/ 26 days X 3.0 X hour of works
4. Types of employment:
a. Contract FOR service: A service provider with SSM registered and not your employee;
b. Contract OF service: He is under your employment and will be having contract of service, offer letter, EPF, SOCSO & EIS;
c. Part Timer: Not working more than 70% centrum of normal employee per week (Full-timer).
a. Staff are our greatest assets and without them, the business will not be moving. Do care for them as they will care for your business.
b. Minimum salary for Malaysia in year 2020 is RM 1,200.00
c. Salary guide for year 2020: Malaysia Salary Guide Year 2020
d. References: Malaysian Employment Act, 1955