FINAL REPORT Final Report - NER 2018 6Mar2018 (For Publication) | Page 65

National Employment Returns (NER) 2018
Variable Pay – Other Compensations
Variable pay is used to recognise and reward employee’s contribution when it is above and beyond their
normal job scope and is linked with certain performance indicators such as quality, productivity,
profitability, sales, etc. It should be noted that insufficient variable pay data was obtained to provide a
separate analysis for Foreign employees. Where data was not obtained, this is mainly due to respondents
not offering variable pay schemes to all or some positions. It is also important to note that variable pay
is an irregular type of payment. Hence, drawing conclusions from the analysis in this section should
take into consideration of the potential low sample base.
NER 2018 also highlights the variable pay practices among the establishments. Figure 2.21 provides a
snapshot of a summary findings on variable pay pattern.
Figure 2.21 Summary Findings for Variable Pay
Overall Observations
Not all establishments paid its employees variable pay. Overall, approximately 45%-64% of the
establishments paid cash allowances & bonuses on top of basic salary to their Malaysian full-time
employees (refer to Figure 2.22). Less than 10% of the establishments provided variable pay to their
employees.
61