wage transformation through productivity-linked wage system (plws)
DESCRIPTION
Wage Transformation Through Productivity-Linked Wage System (PLWS). Sugumar Saminathan Manager, Malaysia Productivity Corporation Tel: +603-79557266 ext 544,DL: +603-79562566, Mobile:+6019-6354078 E-mail:[email protected] Website:http//www.mpc.gov.my - PowerPoint PPT PresentationTRANSCRIPT
Wage Transformation ThroughProductivity-Linked Wage System
(PLWS)
Sugumar SaminathanManager,Malaysia Productivity CorporationTel: +603-79557266 ext 544,DL: +603-79562566,Mobile:+6019-6354078E-mail:[email protected]:http//www.mpc.gov.myMinistry of International Trade and Industry (MITI)
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PRODUCTIVITI
BUSINESSMAN:“Productivity is
reducing cost and increase profits.”
WORKFORCE:
“Productivity
means getting
higher wages,
benefits and
better working
conditions and
environment.”
CONSUMER:“Productivity bring good
quality products and services at cheaper
prices and higher living standards.”
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WHAT IS PRODUCTIVITY?
Productivity =
Output
Input
Output : Goods & Services
Input : Resources Used
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5 WAYS OF IMPROVING PRODUCTIVITY?
5 Ways Firm Approach
O
I
O
I
O
I
O
I
O
I
Reduce Cost
Manage Growth
Work Effectively
Work Smarter
Pare Down
Productivity is a measure of efficiency in the use of inputs or
resources in relation to its outputs
Output
●Gross Domestic Product (GDP),● Total Output, ● Added Value,● Monetary Value of Production,● Quantity of physical unit produced
Output
●Gross Domestic Product (GDP),● Total Output, ● Added Value,● Monetary Value of Production,● Quantity of physical unit produced
Input
● Employees,● Total man-hours worked● Labour cost, ● Capital/Fixed assets, ● Energy, ● Material, ● Services
Input
● Employees,● Total man-hours worked● Labour cost, ● Capital/Fixed assets, ● Energy, ● Material, ● Services
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PRODUCTIVITY IS VALUE CREATION
Product Innovation
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Create/Add Value
IS YOUR COMPANY CREATING VALUE?
i-COMPASS
i-COMPASS is a self learning application tool that help companies to compute the wealth company created by its own and employees efforts
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WORK SMART = HIGHER PRODUCTIVITY
Work environment
Plant & EquipmentPeople
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CONTENTS LABOUR COMPETITIVENESSLABOUR COMPETITIVENESS
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ADDED VALUE PER EMPLOYEE Indicates the added value genarated by an employee. A high value indicates high productivity of an employee
TOTAL SALES PER EMPLOYEE Indicates the total sales genarated by an employee. A high value indicates high productivity of an employee
TOTAL OUTPUT PER EMPLOYEESS Indicates the total sales genarated by an employee. A high value indicates high productivity of an employee
TOTAL OUTPUT PER MAN HOURS Indicates the total output genarated by an employee
per hour. A high value indicates high productivity of an employee
LABOUR PRODUCTIVITYLABOUR PRODUCTIVITY
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ADDED VALUE PER LABOUR COSTEE Indicates how competitive the company is in terms of
Labour Cost. A low ratio indicates high Labour Cost
LABOUR COST PER EMPLOYEE Indicates the average remuneration per employee A high value means high returns to individual workers
and vice-versa.
UNIT LABOUR COST Show the proportion of Labour Cost to Total Output A high ratio indicates high Labour Cost
TOTAL OUTPUT PER LABOUR COST Indicates how competitive the company is in terms of
Labour Cost. A low ratio indicates high Labour Cost
LABOUR COMPETITIVENESSLABOUR COMPETITIVENESS
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CONTENTS PRODUCTIVITY AND QUALITY ENHNACEMENT PROGRAMME
PRODUCTIVITY AND QUALITY ENHNACEMENT PROGRAMME
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Lean Management System
Type of
Lean
Lean Government
Lean Service
Lean Manufacturing
• VSM• Poke-Yoke• TPM• Kanban• 5S• SMED
• Transformation
• Creativity• Innovation• Wastages• Matlamat
Organisasi
Continues Implementation
&Impact
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‘Famous’ 7+1 types of wastages
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PRODUCTIVITY : WEALTH CREATION AND SHARING
Baking & sharing a bigger economic cake
PRODUCTIVITY -LINKED WAGE SYSTEM
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Why Do We Need To Restructure Our Wages?
• A flexible and competitive wage system will enable companies to make quick adjustment to wages that will ensure job stability and reduces the likelihood of retrenchment in the event of an economic slowdown.
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What Is Wage Restructuring
•Wage restructuring is about making wages more flexible and competitive.
•In good times, employees can look forward for bigger bonuses and better incentives when both company and employees performance well.
• In bad times, employees will have greater jobsecurity as company can make quick adjustmenton wages to avoid retrenchment.
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For flexible and competitive wage system that ensure job stability and reduces
retrenchment in the event of an economic slowdown.
“PLWS The Way Forward”
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When Do Company Implement PLWS?
• PLWS should be implement when the companywant to enhance its competitiveness and improve productivity.
• The company want to reward good employees and motivate average employees.
• The company want create harmonious labour relation and create win-win situation.
Productivity-Linked Wage System
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PRODUCTIVITY- LINKED WAGE SYSTEM (PLWS)
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Malaysia’s Policies on Linking Wages To Productivity
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PHASE 1Creating Conducive Environment
PHASE 2Establishing PLWS System
PHASE 3Implementing PLWS System
MPC PLWS MODELMPC PLWS MODEL
Start
1. Create awareness on PLWS among management
team
2. Measure company’s performance
3. Develop PLWS Committee
4. Developing Corporate, Division & Unit KPI
5. Briefing Session with Company’s Workers
6. Obtain feedback from employees and management
8. Establishing PLWS on a trial basis
9. Review and make the necessary adjustments
10. Implement PLWS at the
firm level7. Linking Incentives with Improvement
11. Plan (continuous Improvement)
PHASES IN IMPLEMENTING PLWS
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COMPONENTS OF PLWS
BASIC WAGE
FIXED COMPONENTS
Wage increase for the year based on:-
Productivity, orProfit sharing formula
VARIABLE COMPONENTS
There must always be the fixed and the variable component in
the PLWS
ANNUAL INCREAMENT
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PLWS Model 1:
Profitability Model
• Payment of bonus according to profit levels based on monthly basic pay.
• Payment of bonus according to profit levels based on monthly basic pay.
Profit After Tax(RM Million)
Bonus[Month(s)Salary]
<1.5 (threshold) 0
1.5 - 1.99 0.5
2.0 - 2.49 1.0
2.5 - 2.99 1.5
3.0 and above 2.0
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PLWS Model 1:
Profitability Model
• Bonus payments paid in quantum (RM)
• Bonus payments paid in quantum (RM)
Profit Before Tax(RM Million)
Bonus(RM)
<5 (threshold) 0
5 - 7 500
7 - 9 1,000
9 - 11 1,500
11 and above 2,000
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PLWS Model 2:
Productivity Model
• Bonus paid out at the end of the financial year based on saleable output.
• Bonus paid out at the end of the financial year based on saleable output.
Production Volume (000 m2) (Saleable Output
<5,500 <5,600 <5,750 <6,000 <6,250 <6,500
Bonus (Months)
0 0.25 0.75 1.25 1.75 2.00
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PLWS Model 2:
Productivity Model
• Incentives given based on the productivity targets achieved (Individual).
• Incentives given based on the productivity targets achieved (Individual).
Planned Target Actual Achievements Incentive (RM)
80% Above 100% 150
80% 91 – 100% 100
80% 80% - 90% 50
80% Below 80% 0
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PLWS Model 2:
Productivity Model
• Incentive given base on identified monthly productivity indicators and linked to the team incentives (Team).
• Incentive given base on identified monthly productivity indicators and linked to the team incentives (Team).Performance
CriteriaPerformance
Standard(Target)
1. Production targets Above 80%
2. Quality output Above 90%
3. Customer complaint
Zero complaint
4. Maintenance No machine breakdown
5. Discipline No reminder or warning letter
No. ofCriteria
Achieved
Incentives(RM)
5 100
4 80
3 60
2 0
1 0
• If team of 5 employees able to achieves all 5 criteria RM100/ team member
• If team achieves only 2 criteria No incentives
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PLWS Model 3:
Combine Model
• Payment of bonus according to 2 criteria – Company Performance and Employee Performance Rating
• Payment of bonus according to 2 criteria – Company Performance and Employee Performance Rating
Operating Profits (RM Million)
Variable Productivity payment (Months)
Above 5.00 1.00 1.00 1.25 1.50 1.75 2.00
4.00 – 5.00 0.75 0.75 1.00 1.25 1.50 1.75
3.00 – 4.00 0.5 0.5 0.75 1.00 1.25 1.50
2.00 – 3.00 0.25 0.25 0.5 0.75 1.00 1.25
Below 1.00 0 0 0.25 0.5 0.75 1.00
Employee Performance Rating (%)
<40 40 - 49 50 - 59 60 - 69 70 - 79 >80
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PPLWS AND ITS LWS AND ITS IIMPACTMPACT
Companies with PLWS Elements in Companies with PLWS Elements in Collective AgreementsCollective Agreements
2001 ~ 20042001 ~ 2004 2005 ~ 20082005 ~ 2008
691691 1,5661,566
Impact of PLWS Implementation Impact of PLWS Implementation 2006 (%)2006 (%) 2008 (%)2008 (%)
ProductivityProductivity 2.642.64 5.175.17
Staff TurnoverStaff Turnover 5.215.21 2.132.13
AbsenteeismAbsenteeism 8.808.80 4.174.17
Rejects and ReworksRejects and Reworks 5.335.33 2.852.85
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INDUSTRIAL RELATIONS INDUSTRIAL RELATIONS (AMENDMENT) ACT 2007(AMENDMENT) ACT 2007
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Section 13: Collective Section 13: Collective Bargaining Bargaining
(2A)(2A) A proposal for a collective agreementA proposal for a collective agreement
may provide for one or more of the may provide for one or more of the
following:following:
(a) (a) provision for training to enhance provision for training to enhance skills skills and knowledge of the workmen;and knowledge of the workmen;
(b)(b) provision for an annual review of provision for an annual review of the the wage system; and wage system; and
(c)(c) provision for a performance-basedprovision for a performance-based
remuneration system.remuneration system.
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PLWS in Collective Agreement
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Sector Total Number of Collective Agreement Number of CA / Percentage With PLWS
2010 2011 2012
2010 2011 2012
No. % No. % No. %
Manufacturing 195 180 147 144 73.85 129 71.67 125 86.81
Services 116 117 127 88 75.86 95 81.20 111 87.40
Agricultural 17 17 13 15 88.23 17 100.00 13 100.00
Others 2 6 9 2 100 6 100.00 7 77.78
Total 330 320 293 249 75.45 247 77.19 256 87.37
DISTRIBUTION OF COLLECTIVE AGREEMENT (CA) WITH PLWS BY SECTORS –2010- 2012
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No Elements Manufacturing(125)
Services(111)
Agricultural(13)
Construction(3)
Quarry & Mining(4)
Bonus Payments
1. Contractual Bonus 88(70.4%)
51(45.9%)
1(7.7%)
1(33.3%)
2(50.0%)
2. Bonus Based on Management Discretion 37(29.6%)
31(27.9%)
2(15.4%)
1(33.3%)
2(50.0%)
3. Fixed and Additional Bonus 7(5.6%)
3(2.7%) - - -
4. Bonus Based on Profit/ Company Performance
17(13.6%)
30(27.0%)
3(23.1%)
1(33.3%) -
Annual Increment
5. Yearly Increment 115(92.0%)
106(95.5%)
5(38.5%)
2(66.7%)
2(50.0%)
6. Increment based on Merit 23(18.4%)
26(23.4%) - - 1
(25.0%)Incentives/Allowances
7. Group Target 1(0.8%) - - - -
8. Individual Target 1(0.8%) - 2
(15.4%) - -
9. Service Charge - 14(12.6%) - - -
10. Skill Allowance 5(4.00%)
7(6.3%) - - -
11. Piece Rated Incentives - - 2(15.4%) - -
12. Commitment / Attendance Incentives 59(47.2%)
11(9.9%)
3(23.1%)
1(33.3%)
1(25.0%)
13. COLA 5(4.0%)
17(15.3%) - - -
14. Cost and Time Saving Incentives - - - - -
15. Price Bonus - - 2(15.4%) - -
16. Long Service Award 9(7.2%)
21(18.9%) - - -
17. Outturn Incentives - - 6(46.2%) - -
18. Performance Allowances for Maximum Scale Employee - - - - -
19. Trip Incentives 2(1.6%)
9(8.1%) - - 1
(25.0%)
20. Quality Service Allowance 1(0.8%)
1(0.9%) - - -
21. OMO Incentives - - - -
22. Coaching/Teaching Allowance 2(1.6%)
12(10.8%) - - -
23. Productivity Payment 4(3.2%)
3(2.7%) - 1
(33.3%) -
ELEMENTS OF PLWS IN CA BY SECTORS, 2012
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PLWS Examples.PLWS Examples.
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Wage System
Fixed Components
Variable Components
Basic PayWage
Min. Annual Increment
Profitability ProductivityIncentives
Combined
Example 1:Incentive Based on Performance and Productivity
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Profitability
Profit sharing formula to determine “money in the pot”. The wage incentive will only be given if the profit falls within a predetermined range
Total Bonus = Profit After Tax Monthly Payroll Cost
Variable ComponentsProfitability Incentive – the profitability incentives will be pay when the profits fall within a predetermined range as shown in Diagram : Profit Sharing
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Example of profitability Incentives
The bonus will be paid when the company makes certain amount of profit that falls within a predetermined range. Table : Profitability Incentives
Profits After Tax(RM Million)
Monthly Payroll Cost(RM Million)
Bonus = Profit After Tax Monthly Payroll Cost
Less than 5 5 0
5 5 1month
6 5 1.2 month
7 5 1.4 month
8 5 1.6 month
9 5 1.8 month
10 5 2.0 month
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Productivity
Based on team and individual performance against predetermined productivity measurement
• Total output• Quality output• Wastages• Customer Satisfaction• Individual Performance
Productivity Incentives
The incentives will based on team and individual performance against predetermine productivity measurement.Diagram: Productivity Incentives
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Matrix incentives
Matrix incentives will be given based on the profitability and average performance of division, department and individual as shown below.
Profits(RM million)
Incentives (Months)
Less 5 0 0.1 0.3 0.5
5- 7 0.1 0.3 0.5 0.7
7-9 0.2 0.5 0.7 1.0
9-11 0.3 0.7 1.0 1.3
11-13 0.4 1.0 1.5 2.0
13-15 0.5 1.5 2.0 3.0
AveragePerformance
(%)
Less 70 70 -80 80-90 90-100
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If the company performance are as follows:• Division Performance is 85%• Department Performance is 90%• Individual Performance is 85%• Average Performance of an employee is 86.7%• Based on the calculation above the respective employee will
received 2 months bonus if the company makes RM 13 million profits .The incentives taking into consideration the overall employees performance. In order to received higher quantum of bonus each employees should contribute to the division and department performance as well as their own performance.
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There are two components in this model, the fixed and
variable components.
The Fixed Component comprises:
•Basic Wage
The basic wage comprises the monthly wage which is based
on a salary scale with a minimum and maximum range for
each category of employee.
•Annual Increment
The annual increment is linked to the basic wage and will vary
within the scale of pay assigned to the position.
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There are two types of incentives which are linked to productivity/performance:
• Bonus Based on Profit and Individual Performance • Team Incentive
Bonus Based on Profit and Individual Performance •The profit used in this model is Profit Before Tax which will be distributed to employees based on profit level and performance. The higher the firm’s profitability, the larger will be the amount available for sharing.
•Table below shows an example the matrix system of bonus payment. Based on this matrix, the amount of bonus payment received by an employee will depend on the profitability of the firm and employee performance.
Example 2. . Profit Sharing and Team IncentiveProfit Sharing and Team Incentive
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Profit Sharing Incentive MatrixProfit Sharing Incentive Matrix
Profit (RM million) Variable Incentive Bonus (Months)
> 12 0 0.3 0.5 1.0 1.1 2.1
9-12 0 0.2 0.3 0.9 1.0 1.5
6-8.9 0 0.0 0.2 0.8 0.9 1.3
4-5.9 0 0.0 0.1 0.7 0.8 1.1
< 4 0 0.0 0.0 0.5 0.6 0.9
Employee Performance Rating (%)
<40 40-49 50-59 60-69 70-80 >80
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Example 3. Profitability-Based Increment and Bonus
• The annual increment is based on the ROI
(Returns on Investment) while the individual
performance is based on the performance
appraisal.
• Grade A performance will receive a 6%
increment compared to 5%,4% and 3% for
Grades B, C and D respectively (as in the Table
below)
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Increment Based on ROI and Individual Performance
Employee Individual Performance/Increment
ROI Achievement Grade A Grade B Grade C Grade D
Below 0% 2% or minimum RM20 whichever is higher
0% - 30% 5% 4% 3% 2%
31% - 60% 6% 5% 4% 3%
61% - 100% 7% 6% 5% 4%
Above 100% 9% 8% 7% 6%
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Another aspect of this system is that the ROI achievement
also determines the quantum of bonus to be paid.
If the quantum of ROI achieved is 23% then the firm will
declare a bonus of 0.5 month basic salary.
However, if the firm achieves an ROI more than 100%
then each employee will be given a bonus of between 1.0
to 1.5 months subject to the discretion of the firm and
employee performance.
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Profitability Bonus
ROI Achievement No. of Months
Below 0% 0.5 month
0% - 30% 0.6 month
31% - 60% 0.7 month
61% - 100% 0.8 month
Above 100% 1.0 months
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Example 4. Bonus Based on Company and Individual Performance
The manufacturing firm in this example shall pay
performance bonus based on the company and the
individual performance.
The company performance shall be based on
achievements against business plan of the year and
employee performance shall be based on the
performance appraisal rating and points awarded in
accordance to their annual appraisal
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Bonus Based on Company and Individual Performance
Company Performance Based
on Business Plan
below
85%
85% -
100%
101% -
120%
121% -
140%
Above
140%
Individual Performance Bonus Payout
Unsatisfactory below 40% 0 0.1 0.2 0.3 0.4
Average 40% - 54% 0.3 0.4 0.5 0.6 0.7
Good 55% - 69% 0.5 0.7 0.9 1.1 1.3
Very Good 70% -85% 0.7 1.0 1.3 1.6 1.9
Outstanding above 85% 1.0 1.3 1.6 1.9 2.2
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If the company’s performance rating is 100% and
individual performance is 75% which is “very good”,
then the quantum of bonus that will be granted to the
employee will be 1.0 month. Therefore, this clearly
indicates that whenever both parties i.e. employees and
firm perform very well, there will be higher quantum of
bonus distributed among the employees.
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Debt Collection Current 30 days 60 days 90 days
<RM100,000 2.0% 1.5% 1.0% 0.5%
RM100,000-200,000
1.0% 0.5% 0.25% 0.1%
>RM200,00 0.5% 0.25% 0.1% 0.05%
Example 5. Debt Incentive Collection
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Example 6. Bonus Based on Company and Individual Performance
The manufacturing firm in this example shall pay
performance bonus based on the company and the
individual performance.
The company performance shall be based on
achievements against business plan of the year and
employee performance shall be based on the
performance appraisal rating and points awarded in
accordance with their annual appraisal.
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Bonus Based on Firm and Individual Performance
Firm Performance (Profit Before Interest and Tax (PBIT)- RM million)
<5 5-10.99 11-15.99 16-20 >20
Individual Performance Bonus Months
Poor (Less than 40%) 0 0 0 0 0
Satisfactory (40-64%) 0.5 0.5 0.5 0.5 0.5
Good (65-74) 1.00 1.25 1.50 1.75 2.00
Very Good (75-85) 1.25 1.50 1.75 2.00 2.25
Excellent (85 and above) 1.50 1.75 2.00 2.25 2.50
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Planned Rework Actual Acheivements Incentives (RM)*
10% of the monthly output > 11% 0
10% of the monthly output 8%-10% 10.00
10% of the monthly output 5%-7% 15.00
10% of the monthly output 2%-4% 20.00
10% of the monthly output 0-1% 25.00
Example 7. Rework Incentives
Incentives will be paid when there is reduction in rework rate.
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Example 8: MERIT AND PROFIT SHARING SCHEMEMERIT AND PROFIT SHARING SCHEME
The Scheme consist of two components:
(a) Fixed Component which comprises of basic wage plus an annual increment of 3%of basic salary and an annual bonus of one month’s basic salary.
(b) Variable Component. Among the tools used to determine the variable component are profit sharing and personal performance review (PPR).
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• Shareholder’s fund = RM 2.0 million
• Retained Earnings = 12 .5% x RM 2.0 =RM 250,000
• Profit after tax = RM 1.0m
• Amount for sharing = RM 1.0 m - RM 250,000 = RM 750,000 m
PROFIT SHARINGPROFIT SHARING
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DISTRIBUTION OF PROFITSDISTRIBUTION OF PROFITS
(i) 50 per cent of profits to shared available for sharing = RM 375,000 Total Payroll RM 500,000
= 0.75 months basic salary
for each employee
(ii) 50 per cent to be distributed based on employees performance using the Personal Performance Review (PPR)
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Employees PPR Score Salary (RM) Bonus Score(PPR Score X Salary)
1 70 700 49,000
2 75 800 60,000
3 80 700 56,000
4 85 900 76,500
5 80 1000 80,000
6 75 1100 82,500
7 90 950 85,500
8 95 1050 99,750
9 70 850 59,500
10 80 750 60,000
11 80 900 72,000
Total 780,750
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If the company decide to allocate RM11,000 for a unit of 11 employees, based on the basic salary and Personal Performance Review Scores (PPR) as indicated, the employees will receive the following bonus points: Bonus payment = 11,000 ------------- = 0.0149
780,750
Each employee in the unit will get the following bonus payments
based on PPR scores as shown in table:
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Employees Bonus Score(PPR Score X Salary)
Bonus Point Bonus Received(RM)
1 49,000 0.0149 730.00
2 60,000 0.0149 894.00
3 56,000 0.0149 834.00
4 76,500 0.0149 1,140.00
5 80,000 0.0149 1,192.00
6 82,500 0.0149 1,229.00
7 85,500 0.0149 1,274.00
8 99,750 0.0149 1,486.00
9 59,500 0.0149 887.00
10 60,000 0.0149 894.00
11 72,000 0.0149 1,073.00
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Employees Profitability Bonus
(Months Bonus)
Performance Bonus(Months Bonus)
Total Bonus Received (Months Bonus)
1 RM 525 (0.75 Mths) 730 (1.04 Mths) 1,255 (1.79 Mths)
2 RM 600 (0.75 Mths) 894 (1.12 Mths) 1,494 (1.87 Mths)
3 RM 525 (0.75 Mths) 834 (1.19 Mths) 1,359 (1.94 Mths)
4 RM 675 (0.75 Mths) 1,140 (1.27 Mths) 1,815 (2.02 Mths)
5 RM 750 (0.75 Mths) 1,192 (1.19 Mths) 1,942 (1.94 Mths)
6 RM 825 (0.75 Mths) 1,229 (1.12 Mths) 2,054 (1.87 Mths)
7 RM 713 (0.75 Mths) 1,274 (1.34 Mths) 1,987 (2.09 Mths)
8 RM 787 (0.75 Mths) 1,486 (1.42 Mths) 2,273 (2.16 Mths)
9 RM 638 (0.75 Mths) 887 (1.04 Mths) 1,525 (1.79 Mths)
10 RM 563 (0.75 Mths) 894 (1.19 Mths) 1,457 (1.94 Mths)
11 RM 675 (0.75 Mths) 1,073 (1.19 Mths) 1,748 (1.94 Mths)
Total bonus paid based on profitability and performance:
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Example 9:: Performance Incentives AllowancePerformance Incentives Allowance
• The company decided to reward employees which already reach their maximum salary. Employees who have reached the maximum on their salary scale and have performed commendably during the period of review, shall be eligible for a monthly allowance for the next 12 month. Performance Incentives Allowances shall include the following category of performance as shown in table below.
Performance Category Monthly Allowance
Highly Effective RM 60.00
Competence RM 40.00
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Example 10: : Monthly Performance Incentives SchemeMonthly Performance Incentives Scheme
The company will pay performance incentives based on the qualifyingcriteria set by the company. Each employee must meet all the criteria tobe eligible for the incentives. The amount of the incentives will increasefrom month to month. For example in an employee can achieved all thecriteria for January to December than the total incentives received bythe employee will be RM 750.00 (Table 6). However if the employee failto meet any one of the qualifying criteria in any given month will renderthe employee to restart at the minimum amount of RM 35 per month uponmeeting the qualifying criteria for the month.
Qualification Criteria:a. Nil late attendance for that month except with valid late comings reasons needs to
be approved by respective Head of Department.b. Nil absenteeism for the month except with valid reasons needs to be approved by
respective Head of Departmentc. Only one (1) medical leave for the monthd. Nil disciplinary record for the months i.e. written counseling , warning letter
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Months Monthly Amount (RM)
Accumulated Monthly Amount (RM)
January 35 35
February 40 75
March 45 120
April 50 170
May 55 225
June 60 285
July 65 350
August 70 420
September 75 495
October 80 575
November 85 660
December 90 750
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PLWS Model
Bonus Based on Profits/Returns
Increment Based on Performance
Incentives based on employees quality
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Incentives Based on Individual/Team/Company Performance/Target
Incentives Based on Skills
Bonus based on Sales/Total Output
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PLWS COMMITTEEAdvisor
(Directors)
PLWS Committeei.Head of each Department
ii.HR Department (Secretariat)iii.Employee representative
Production QA Safety & Health HR / Finance
Maintenance Sales & Delivery Procurement
Transformation • Innovation • Partnership 75
THE COMMITTEE’S TERMS OF REFERENCE (TOR)
Transformation • Innovation • Partnership