2021 sees average salary increase of 2.5%

Misco publishes 36th edition of its annual ‘Salaries and Benefits Report’

The average salary increase observed in 2021 was of 2.5%, and salaries have, in some areas, remained fairly stable while in others an increase has been observed, particularly in highly competitive sectors and those not harshly impacted by the pandemic. This compares well with the EU’s report of an increase of 2.5% in compensation per head between 2020 and 2021.

This is one of the main outcomes reported in misco’s 36th edition of its annual Salaries and Benefits Report for 2021. Compiled by misco, the report is based on up-to-date data collected specifically and obtained directly and exclusively from employers. For these reasons this report acts as a strong and reliable reference report on employee compensation in Malta with detailed information on salaries and related benefits, as well as an analysis of recent developments in Malta’s labour market.

The report also presents the results of the eighth annual misco survey on HR Developments in Malta, which this year, has been conducted in collaboration with the Malta Employers Association.

This collaboration has allowed misco to expand the survey further, to be able to deliver enhanced and more comprehensive results related to the employment of individuals and the developments and challenges faced by individuals who manage the HR functions in various organisations around Malta.

“These past 12 months have been a challenging year for our country and our economy. We all had to face the challenges caused by the coronavirus in our supply chain, our operations and in our markets. Further challenges lie ahead as government support to businesses is tapered off. We also have to acquire an understanding of how the macro-economic context will evolve as we face changing customer demands and a changing labour market,” says Lawrence Zammit, founding partner of misco.

Joanne Bondin, director of misco Consulting, added that “the report is now in its 36th edition and misco seeks to ensure it remains alive and relevant to employers in the constantly changing market dynamics. In fact, this year’s edition includes 12 new positions and the realignment of job roles to reflect the dynamics and the changes going on in the Maltese labour market,” he said.

Another interesting aspect highlighted in this report refers to how companies are adopting different strategies in the way they approach employee remuneration. A number of employers appear to be focusing on the retention of employees, particularly if their sector was not severely affected by the pandemic. Others appear to be focussing on the survival of the enterprise. These adaptations are and should be encouraging employers to adopt a more holistic approach to their human resources function.

“This development now requires the next step, which is developing a strategic longerterm human resources strategy that forms an integral part of the company’s business strategy,” added Zammit.

The categories of jobs covered in the report include management, executive, clerical and technical roles in various private, foreign-owned and government controlled, service and manufacturing companies.

Bondin added: “misco is committed to continue developing partnerships with its clients by helping them understand Malta’s labour market environment, maximise the engagement of their employees to their organisation’s goals and face successfully their HR challenges. This Salaries and Benefits Report is mostly aimed at helping company’s management ensure that their reward strategy is in line with their positioning in the market and what the market is offering to attract and retain employees.”

To obtain your copy of the misco ‘Salaries and Benefits Report 2021’ please send an email to businessreports@miscomalta.com