Malaysia underscores commitment to Progressive Wage Policy

Policy aimed at enhancing workers' income, productivity in five key sectors

Malaysia underscores commitment to Progressive Wage Policy

Malaysian Prime Minister Datuk Seri Anwar Ibrahim has reiterated the government's commitment to implementing the Progressive Wage Policy in the private sector amid strong demand from youth.

"This is because young people and graduates are asking about their future in the private sector. Hence, the Progressive Wage Policy is introduced," Anwar said as quoted by Bernama.

The prime minister made the remarks as the Ministry of Human Resources launched this month a progressive wage pilot project for five key sectors:

  • construction
  • manufacturing
  • wholesale and retail trade
  • information and communication
  • professional scientific, and technical activities.

"The progressive wage policy underscores the government's commitment to labour market reform, aimed at enhancing workers' incomes, in tandem with increased productivity," the ministry said as quoted by The Edge Malaysia.

"This new policy introduction will complement existing wage initiatives, such as the Minimum Wage Order and the Productivity Linked-Wage System."

Employers joining the pilot programme will receive up to RM200 monthly incentives per employee for the entry-level group. The incentive will go up to RM300 per month per for non-entry-level employee who have been with the organisation for over a year.

Public sector salary hike

Meanwhile, Anwar also said their new Public Service Remuneration Scheme (SSPA) should also tell private sector employers to avoid prioritising high profits over employees.

The SSPA, which was announced by the prime minister on May 1, is expected to come into effect this December.

The scheme will grant public servants salary increases of more than 13%, after years without a review on their wages, according to Bernama's report.

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