Introduction
Managing people requires a balance of fairness and legality. To build a stable team, you must implement HR rules and salary structures that comply with the Employment Act 1955. This includes defining basic wages, overtime rates, and leave entitlements. Without a formal structure, payroll becomes a monthly headache, and employees may feel undervalued or unfairly treated, leading to high turnover rates.
Aligning with the Employment Act
The first step to implement HR rules and salary structures is to ensure you meet the national minimum wage and statutory contribution requirements. In Malaysia, this means calculating and deducting EPF, SOCSO, and EIS correctly every month. Your HR rules should also clearly define work hours (limited to 45 hours per week) and overtime calculations. By being transparent about these numbers, you build trust with your staff and ensure the business remains compliant with labor laws.
Designing a Fair Salary Structure
To implement HR rules and salary structures that motivate, consider more than just a base salary. Include performance-based incentives or commissions, especially for sales roles. For field-based teams, you can use Merchio to track performance metrics, such as number of store visits or sales achieved, which can then be tied directly to their bonus structure. This data-driven approach ensures that rewards are given based on objective results rather than favoritism.
Managing Leave and Attendance
A critical part of the effort to implement HR rules and salary structures is tracking time off. Your rules must specify the number of annual leave, sick leave, and hospitalization leave days. For remote or field staff, using mobile check-in systems ensures that attendance is recorded accurately. This data is essential when calculating the final salary at the end of the month. By automating these processes, you ensure that your payroll is accurate and your implement HR rules and salary structures strategy is sustainable as you grow.