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Contact Us:
Tel: 03-7804 2664
Fax: 03-7804 2863
Email: survey@peresearch.com.my
Tel: 03-7804 2664
Fax: 03-7804 2863
Email: survey@peresearch.com.my
PLWS Models
The PLWS may be based on the following models:
Profitability Model
The fixed component found in this model is made up of:
Main Components of PLWS
Basic salary;
Annual salary increment; and
Contractual bonus (where
applicable)
Annual salary increment is based on increased
productivity/profit distribution formula jointly
agree upon.
The productivity and performance of the
individual, work group or organisation may linked
to determine the variable components.
Fixed Component
Variable Component
• Basic salary;
• Annual salary increment; and
• Contractual bonus (where applicable).
• Annual salary increment; and
• Contractual bonus (where applicable).
The variable component comprises:
• Bonus payment
This component is based on the profit of the company. The profit sharing formula should be agreed upon by the management and the union and spelt
out in the collective agreement or through negotiation for a nonunionised company.
• Wage incentive
This component will be paid when the profits earned exceed a predetermined or threshold level. This level of profit can be calculated based on return on
investment and average profits earned in the past several years.
investment and average profits earned in the past several years.
Productivity Model
The fixed component found in this model is made up of:
• Basic salary;
• Annual salary increment; and
• Contractual bonus (where applicable).
• Annual salary increment; and
• Contractual bonus (where applicable).
The variable component comprises:
• The wage incentive should commensurate with productivity growth;
• The annual salary increment is paid based on variable productivity;
• The annual salary increment is paid based on variable productivity;
Mixed/Combined Model
This model is a combination of the Profitability and Productivity Models. For example, under the variable component, payment of bonus will depend on
the productivity of employees and company profit.
• The management and employees / employees’ representatives will negotiate on the appropriate incentive payment based on the productivity growth for
the year;
• At the initial stage, a formula for the adjustment of the variable productivity payment should be devised;
• The variable productivity payment which depends on the performance of the company. If performance declines considerably, the variable payment may
not be made;
• Companies without their own productivity indicators may use industrial indicators or national indicators or the national economic growth indicators
as a guide to determine the salary adjustment for the year; and
• The productivity indicators used should be based on the value added of each employee or other methods.