Salary Reduction Letter - Consent Required Addendum to the Employment Contract MalaysiaYour boss might calls you into his/her office and asks you whether you’d consider taking a pay cut in order to keep your job. Surprised? You shouldn’t be. As the worldwide recession deepens, more and more companies are adopting this strategy in an effort to reduce labor costs while avoiding major layoffs. Whether you, as an employee, should accept the offer depends on your specific needs, both in terms of your career and personal finances. I was given a choice to respond to the salary cut with the statement below.
With your agreement, your base salary will be reduced by 5% with effect from June 1, 2009, and a corresponding reduction in any salary-related benefits, including EPF contribution, Personal Accident Insurance, Term Life Insurance, Annual Wage Supplement, SOP, Vacation Leave encashment (earned unused upon termination) and Overtime, if eligible.
As the economy worsens, and the economic slump deepens and broadens, many of us are faced with difficult choices about how to survive. A lots of company searching for ways to trim costs. Many are turning to layoffs or salary cuts, or both. Tough times require tough measures, and I suspect things are going to get worse before they get better.
Pro: You get to keep your job.
Pro: The company will owe you.
Pro: You’re helping your colleagues stay employed.
Con: The offer may not match your financial needs.
Con: It decreases your professional standing.
Con: You may never reach the same pay grade again.
Whether or not you decide taking a salary cut is right for you, it’s important you behave with integrity. Don’t let your reduced pay affect the quality of your work or make you bitter. Otherwise, you’d be wasting all the goodwill you garnered when you accepted the offer. By the same token, if you choose to quit your job instead, make sure not to burn any bridges. Leaving a company for a higher remuneration is perfectly understandable; doing so in a disrespectful manner is not. Remember that your professional reputation is more important than any salary.
speechless... you leaving already... who cares about that pay cut anyway...
i care for u, man...haha just to voice it for you ;)
I think there are still plenty of opportunities out there. I have talked to a few Job Recruitment firms and found that employers are offering quite well for mid range professional like us (not sure about your range, Vincy. I mean Jared and myself), in time of economy crisis.
Congratulation to Jared for one step forward in his career. I am not letting your overtake me just like that though (evil grin).
Ben, we haven't seen the worst of the market yet. But M'sia market is still surviving until now which is still ok...but don't know how long.
Am I ahead of you? well, we in the different field here..which we can't compared with each other ^^ (Angel grin)