DPB 6013

CHAPTER 7
Malaysian legislations related to compensation
Malaysian legislations related to
compensation

a. Employment Act 1955

b. The Sabah Labor Ordinance
c. The Sarawak Labor Ordinance
d. Workmen’s Compensation Act 1952
Malaysian minimum wages concept
The Malaysian Minimum Wage Policyis not much
different. In its first report presented to the
government in March 2012, the National Wages
Consultative Counciloutlined the following
objectives:
1. ensuring the basic needs of workers and their
families are met,
2. providing sufficient social protection to workers,
3. encouraging industry to move up the value chain
by investing in higher technology and increase
labourproductivity, and
4. reducing the nation’s dependence on unskilled
foreign labour
Benefits Provided To Employee
I. The statutory benefits :
a. Employee Provident Fund
b. Employee Social Security
c. Maternity protection
d. Gazetted paid leaves
i. Annual leave
ii. Sick leave
iii. Public holiday
iv. Rest day
II. The common non-statutory benefits
a. Time-off payments
b. Health care
c. Insurance
d. Financial services
e. Subsidies and services
f. Allowances
Rewards In Compensation
A reward is an appetitive stimulus given to a human
to alter its behavior. Rewards typically serve as
reinforcers. A reinforcer is something that, when
presented after a behavior, causes the probability of
that behavior's occurrence to increase. Note that,
just because something is labelled as a reward, it
does not necessarily imply that it is a reinforcer. A
reward can be defined as reinforcer only if its
delivery increases the probability of a behavior.
Reward or reinforcement is an objective way to
describe the positive value that an individual
ascribes to an object, behavioral act or an internal
physical state. Primary rewards include those that
are necessary for the survival of species, such as
food, sexual contact, or successful aggression.
• Secondary rewards derive their value from
primary rewards. Money is a good example. They
can be produced experimentally by pairing a
neutral stimulus with a known reward. Things
such as pleasurable touch and beautiful music are
often said to be secondary rewards. For example,
there is a good deal of evidence that physical
contact, as in cuddling and grooming, is an
unlearned or primary reward. Rewards are
generally considered more desirable than
punishment in modifying behavior.
The Common Financial Rewards

a. Salary increment

b. Bonus and profit sharing

c. Shares
The Common Non-financial Rewards

a. Performance awards
b. Letters of appreciation
c. Sponsorship to seminars, conference
and overseas tours
d. Rewards for long service
Thank You