Human Resources Minister unveils year-long pilot of Progressive Wage Policy

Over 290,000 employers can apply for cash incentives under the policy

Human Resources Minister unveils year-long pilot of Progressive Wage Policy

The Malaysian government is embarking on a significant initiative aimed at enhancing workers’ livelihoods through the implementation of the Progressive Wage Policy. Human Resources Minister Steven Sim Chee Keong has announced the commencement of a pilot project, slated to run for at least one year, to gauge the effectiveness of this policy.

Speaking at a Town Hall meeting dedicated to discussing the pilot project, Minister Sim underscored the importance of evaluating and adjusting the initiative to ensure its success. He highlighted the ministry’s commitment to improving wages for Malaysian workers, stating, “even if this pilot project stops, the wage rates set in the conditions are reasonable and sustainable.”

The Progressive Wage Policy is a pivotal step in the government’s endeavour to reform the labour market and achieve a more equitable income distribution. The government aims to amplify its impact, targeting the participation of 1,000 companies across different sectors including manufacturing, construction, wholesale and retail trade, repair of motor vehicles, information and communication, as well as professional, scientific, and technical activities.

Joining the initiative

As of the announcement, approximately 500 employers have already registered for the pilot project, demonstrating considerable interest and commitment from the business community. Minister Sim revealed that over 290,000 employers are eligible to apply for cash incentives under the policy, potentially benefiting over 6.3 million formal sector workers earning between RM1,500 and RM4,999 per month.

In addition to providing financial incentives, the government aims to empower small and medium-sized enterprises (SMEs) by subsidizing higher wages. Minister Sim emphasized that these subsidies are not a long-term solution but rather a catalyst for enhancing competitiveness and attracting skilled workers. He stressed that sustainable wage growth will enable companies to thrive and create job opportunities independently.

Employers interested in participating in the pilot project and accessing subsidies are encouraged to visit the official website for guidelines and registration.

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