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tong
17/09/2009 09:30:30
Re: Wages

EA defines Wages - basic wages + all other payments in cash . It say it does not include Annual Bonus.

Annual Bonus is not defined.

Would contractual bonus be considered Annual Bonus...or just variable bonus?
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KL Siew
kl_siew@yahoo.com
17/09/2009 14:46:06
Yes, annual bonus is not defined and contractual bonus that is paid annually is also annual bonus. Anyway, such exclusion from wages is in a way for the protection of the employees. The Employment Act covers non-manual employees up to not more than RM1500 per month. If bonus is included, that may bring his wages to more than RM1500, in which case may put him out of the scope of the EA.
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tong
18/09/2009 17:49:49
tks...good argument...

would then say that Performance incentive paid every quarter akin to bonus and hence not included under Wages?
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KL Siew
20/09/2009 08:50:23
To me, it will not include but for the purposes of calculating termination benefit under the Employment (Termination and Layoff) Benefits Regulations, performance incentive may be included for calculating the average "true day's wages". Consult the Labour Department to make sure.
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