Salary Expectations

Financial rewards are often a major consideration for many students when it comes to deciding on a course of study to pursue and subsequently a career. This article introduces students to the financial rewards for different careers and highlights the factors that influence them.

Overview

The word ‘remuneration’ is a broad and formal term to describe any payment received for work or services rendered. A salary refers to a fixed amount of money paid to employees usually at the end of every month. Salaries differ according to the kind of work or services you engage in and whether the employment is full-time or part-time. In addition to being paid a fixed amount regularly, full-time employees may also receive allowances and other non-monetary incentives ranging from flexible working arrangements to gym memberships as part of their remuneration package. If you work part-time, your remuneration will be calculated based on the number of hours you work or the type of work that you do. As for freelancers, they typically get paid on a project basis and thus, don’t usually receive other benefits that full-time employees do. Employers, on the other hand, get to decide how much and how often they want to be paid, usually in the form of a director’s fee and dividends if the company is profitable. 

Gross and net salary

As an employee, you normally receive your salary at the end of the month with a payslip that provides the following details:

• Gross/basic salary
• Other forms of monetary benefits (if any) such as allowances and commissions for salespeople 
• Deductions
• Net salary (Balance amount after subtracting deductions from gross salary)

Your gross salary is the amount stated in your offer letter that excludes the deductions and taxes that will count towards the final amount known as your net salary. In Malaysia, both employers and employees need to contribute to the Employee Provident Fund (EPF), Social Security Organisation (SOCSO) and Employment Insurance Scheme (EIS). Each of these schemes functions as retirement savings or as a form of emergency funds to safeguard the employees’ welfare. These contributions will be deducted from the monthly gross salary as well as other forms of remuneration listed on the employee’s payslip. Your payslip will also include a Monthly Tax Deduction (MTD) if your annual income exceeds…

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