KUALA LUMPUR – The progressive wage model will be tabled in Parliament on November 30, Economy Minister Rafizi Ramli told the Dewan Rakyat today.
The plan to reform salary structures in Malaysian companies – as well as to complement the existing minimum wage policy and productivity linked wage system – will see incentives, including cash handouts, given to employers, he added.
This is to encourage their participation in implementing the progressive wage model, which will be voluntary.
“The employers will be evaluated and rated to enable companies to compete with one another in creating and providing a better salary structure.
“The government’s main intention is to create a more vibrant talent market, while ensuring that the wages offered are according to the model… because if employers pay (workers) less, they will face difficulties hiring the talent needed for their business.
“Meanwhile, on the employees’ part, in order to be recipients of progressive wages, they need to comply with training and skills improvement conditions, which will translate into a higher quality workforce that will produce higher productivity.
“This is a prerequisite for the country to increase high value economic content,” Rafizi, who recently recovered from a heart attack and surgery, said.
He also said that a pilot project on implementation of the progressive wage model will begin in 2024, in order to assess its feasibility before being rolled out.
This will also keep momentum on the issue and ensure the government continues to prioritise the people’s concerns about their salaries. – October 30, 2023