Islamic Finance 

Malaysia: Bank staff gets pay rise of between 10 to 12 per cent

| 10 January, 2019


Some 20,000 bank employees consisting of clerical and non-clerical categories from 20 banks will receive salary adjustment of 10 to 12 per cent, said the Malayan Commercial Banks’ Association (MCBA).

MCBA president Nora Abd Manaf said the salary adjustment was effective Jan 1, 2018 and the staff will receive their salary adjustment by month-end.

“We have 20 banks, hence, it is up to them. But I assure it will be done by end of this month,” she said at a press conference after the signing of a new collective agreement (CA) for the period from Jan 1, 2018 to Dec 30, 2020.

She also said that the cost of living allowance payable is raised from RM400 to RM600 effective Jan 1, 2019.

Apart from the salary adjustment, the starting salary for different employee groups covered by the CA will move up by 12 to 16 per cent with their maximum salary raised by 16 per cent.

“Another significant benefit under the new CA is that all member banks have agreed to grant zero per cent interest rate for the first RM100,000 staff housing loan starting April 1, 2019,” she said.

“This benefit will raise the disposable income of the employees, especially the B40 (Bottom 40 per cent household income group) category and will also support the government’s effort to increase home ownership among low income communities,” she said.

Apart from the salary adjustment, the new CA will also provide enhancement to selected existing employment benefits, with an increase in monetary value of between 10 per cent and 50 per cent.

“These existing benefits are designed to cover a wide range of items catering to employees’ needs at different stages of life, such as 10 working days for marriage leave, reimbursement of delivery charges up to RM1,500 for two confinements and many more,” she said.

Meanwhile, the National Union of Bank Employees (NUBE) secretary-general J. Solomon said the new CA was concluded harmoniously between the banks and union negotiation team.

“NUBE is proud of its members who have contributed immensely to the profit of the banks and in this aspect, we look forward to harness the good relationship and work towards building better employment condition,” he said. 

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