KUALA LUMPUR – Economy Minister Rafizi Ramli clarified that the progressive wage model (PWM) is intended to complement existing policies rather than replace them.
In a statement, he highlighted that the unique features of PWM distinguished it from other policies such as the minimum wage policy and the productivity-linked wage system.
“PWM provides a variety by including the three features of being voluntary, incentive-based, and related to productivity,” Rafizi said.
“The ministry is determined to successfully implement PWM’s pilot project next year, before its full implementation nationwide.
“While I welcome views and comments from all parties, I hope the true context is shared with the people, so that we can maintain momentum and solve long-withstanding issues that will continue affecting generations to come.”
Rafizi urged the public to familiarise themselves with the accessible policy, whose white papers have been presented in Dewan Rakyat and unanimously approved by parliamentarians.
The white paper can be accessed by the public via this link.
He said this would allow the people to understand the PWM, which has become the government’s bid to solve the issue of low and stagnant wages by reforming the labour market to increase employees’ salaries according to productivity increase.
Rafizi, who is also Pandan MP, said this in response to a statement by Parti Sosialis Malaysia (PSM) deputy chairman S. Arutchelvan which implied that PWM will replace current employment policies.
Earlier today, Arutchelvan urged Rafizi against “killing” the Minimum Wage Act. Under the impression that the PWM would replace it, he said it would be “disastrous to the working class.”
The PWM project aims to address low-salary issues and reform its structure, especially in the private sector.
Its pilot period will run from June to September 2024, and will include the participation of 1,000 companies with employees earning a salary between RM1,500 to RM4,999.
The cash incentives for employers under the PWM are RM200 per month for entry-level employees, and RM300 monthly for existing workers. Both incentives are applicable for up to a year. – December 1, 2023