The Malaysian Employer Federation (MEF) has commented that employees who elect to work from home (WFH) should have their wages reduced. In addition, their travel allowances – if provided – should also be deducted.

“There are plenty of opinions as to whether those who work from home should be paid less, but many companies say that if there is a reduction, it should not be much – between 10% to 12%,” said the executive director of MEF, Shamsuddin Bardan, adding that this is because some companies offer allowances for their employees to commute to work.

In the same vein, Shamsuddin said that travel allowances, too, should be discontinued if an employee opts to work from home. “Some workers would prefer a position with lower salary where they can work from home, as compared to one where they have to commute to work despite being able to have the cost reduced. That is one of the factors that should be taken into consideration if companies were to consider reducing the salaries of employees who are working from home,” he remarked.

Shamsuddin further claimed that some employees agree with this rationale, although he also admitted that there may be other parties who argue that those who work from home are also working as usual, as if they were in the office. As such, their salaries should not be reduced.  

“Ultimately, the matter depends on the employee’s choice – if they are willing to accept certain allowance deductions and work from home, or decide to travel to work and deduct the costs,” said Shamsuddin.

Aside from that, Shamsuddin also highlighted a finding from a recent MEF survey, which revealed that few employers are keen to continue the WFH or hybrid work model, especially as Malaysia transitions into the endemic phase of the Covid-19 pandemic. “Most employers will choose to return to the office. If an employee works from home, his or her level of productivity should not reduce, but in fact, increase,” he said.

(Source: Free Malaysia Today)

• TAGS:
• Hybrid Work Model
• Malaysian Employers Federation (MEF)
• Paycut
• Shamsuddin Bardan
• Travel Allowances
• Work From Home