Progressive wage policy, minimum wage order will raise, says Human Resource Ministry

KUALA LUMPUR: The implementation of the Progressive Wage Policy and the Minimum Wage Order will help boost workers’ incomes and accelerate the growth of salary rates in Malaysia.

The Human Resources Ministry said in a statement on Wednesday (May 31) that these policies would also address issues related to the low Gross Domestic Product (GDP).

“It aligns with the Mid Term Review of the 12th Malaysia Plan to boost wages and achieve a more balanced income distribution. It is based on productivity and aims to ensure fairness for both employees and employers through a feedback concept,” the ministry said.

The government had earlier agreed to implement a pilot project for the progressive wage policy from June to August, involving 1,000 employers on a first-come, first-served basis.

The ministry added that it was part of the government’s commitment to reform the workforce market and increase workers’ wages according to productivity.

“The introduction of this new policy will complement the existing wage initiatives, including the Minimum Wage Order and the Productivity Linked-Wage System (PLWS),” the ministry added.

The Human Resources Ministry also emphasised its commitment to helping workers secure their incomes through the implementation of the Minimum Wage Order, which has raised the incomes of low-skilled workers.

Statistics show that around 875,000 private sector workers in Malaysia who earned less than RM1,500 now enjoy the minimum wage. The latest of five Minimum Wage Orders introduced since 2012 ensures a uniform minimum wage of RM1,500 a month throughout the country.

“The dissemination of information and sharing of wage analysis are vital to raise awareness and help stakeholders, including government agencies, employers, and workers’ unions, to plan holistically for the country’s economic development,” the ministry added. – BK