Lower pay increases expected this year as employers get cautious

The looming economic uncertainty has made employers more cautious, but workers can still expect a pay rise this year.

'Any increment should take into account inflation. We do not want a situation where companies give wage increments that do not even cover that,' said Labour MP Zainal Sapari.

Economists and human resource consultants estimate that the average nominal wage increment, not taking into account inflation, will be about 4 per cent this year - a dip from last year's 6 per cent.

Inflation is expected to be between 2.5 per cent and 3.5 per cent this year.

Economists say that, with a slowdown expected, companies will pull back on giving generous increments, although they would have done well with the strong growth in 2010 and last year.

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