Small Business Dilemma: What's a Fair Mileage Rate for Sales Staff?

Hi, my name is Reza and I am new to this forum. I am a partner/director at a small printing company in Kepong. There are only about 10 of us in the company. As we are a small outfit, we do not have a dedicated HR manager. I am currently handling HR matters in my company, but my experience and knowledge in HR are minimal.

Question: Fair Mileage Rate for Sales Staff

My question is: What is a fair mileage rate (per km) for sales staff given the size of my company? We can't offer too high because we are small, but I do want to be fair to my sales staff. Any help would be much appreciated.

It is not a question of "big" or "small." While calculating the rate per kilometer (rate/KM), we have to consider the maintenance expenses as well. I recommend you contact the Operations Manager of a courier company near your office. They have a systematic method of fixing the rate per kilometer for every type of two-wheeler or four-wheeler. You should adopt the same calculation method as theirs.

Ok...

Regards, DVD

Corporate Mileage Rates

As per normal corporate rates:
• Car: RM 0.60
• Motor: RM 0.40

Larger Corporations' Rates

For larger corporations like Sunway Group:
• Car: RM 0.70
• Motor: RM 0.45

If you offer your staff less than RM 0.60 per km for a car, then it is really a loss for them, as RM 0.60 already includes their maintenance and petrol (for cars below RM 80k). It's your decision whether to pressure your staff or provide better benefits to make them feel like part of the company. Benefits are one of the reasons why staff stay in a company for the long term.