Total remuneration in Malta increased by 2.8 per cent when compared to last year, according to a MISCO report. This was driven mainly by sectors that have steadily kept up the demand for employees, particularly those least affected by the pandemic or those affected positively.
These increases in remuneration highlight the value attached to such positions in the light of sustained demand for highly-competent and professional individuals, which though executed more cautiously, has not abated during these past 12 months.
The largest increase was registered in IT-related jobs, up by six per cent and twice the rate seen in the legal and compliance sector, which reported the second highest increase.
This year’s edition of the Salaries and Benefits Report by MISCO, which is the 35th in the series, found that companies are increasingly moving towards performance-based bonuses. While the fixed component in salaries has generally remained stable this year, variable remuneration based on results has tended to increase.
“The impact of the economic fallout on the labour market has been dampened by a mix of factors,” MISCO director Lawrence Zammit explained.
Companies are moving towards performance-based bonuses
“While GDP fell by more than 16 per cent in the second quarter this year, the impact on the labour market has been mitigated as a combined result of the COVID-19 Wage Supplement scheme, departing expats, and a shortage of skills in specific sectors. How matters will develop in the coming months is still uncertain as there is as yet no definite pattern which is emerging.”
The report notes that, although national publications show that the average compensation per employee has decreased this year, it does not necessarily follow that contracted remuneration packages are dipping. Actual income earned may have been affected by factors such as shorter working weeks.
MISCO’s Joanne Bondin said that the coronavirus may also have tamed the intensity of employee mobility we have been experiencing in the past few years. She noted that due to the uncertainty the world is facing, employers may have decided to retrain their employees rather than seek to recruit externally, and employees may, in turn, also wish to weather the storm with their present employer.
Apart from providing information on salaries and related benefits, the report also includes a brief analysis of recent developments in Malta’s economy to provide the wider context, as well as the results of the seventh annual MISCO survey on HR developments in Malta.
“Salary demands remain the major HR challenge for companies, but the current scenario has seen such pressures decrease when compared to past studies,” Bondin pointed out.
“The current situation is, however, creating new priorities such as reskilling and staff retention of employees with the required skill set and the importance of these elements is set to keep increasing in order for companies to remain competitive.”
The MISCO Salaries and Benefits Report is an annual publication that maps out remuneration in the labour market. The 2020-21 edition provides detailed information about more than 120 management, executive, clerical and technical roles in locally-owned, foreign-owned and government-controlled organisations, covering all sectors in the Maltese economy.
To acquire a copy of The MISCO Salaries and Benefits Report 2020-21, send an e-mail to advisory@miscomalta.com.