Economic Minister, Rafizi Ramli said the pilot run of the proposed progressive wage model will start in June next year with 1,000 firms that have workers earning between RM1,500 and RM4,999. “The companies will be chosen with transparency based on the principle of equality, the needs of the sector and policy support,” he told Parliament on Tuesday. He added that the impact of the pilot run will be evaluated in September, to ensure the efficacy of the policy before its implementation.
The White Paper on the Progressive Wage Model will be tabled in the Dewan Rakyat on November 30. Rafizi said the progressive wage policy aims to address the issue of low pay and reform the salary structure especially in the private sector. The White Paper is expected to detail the basic features and mechanism of the policy.
Meanwhile, Human Resources Minister V. Sivakumar said the progressive wage model will improve employee productivity and increase profits for employers. He added that a progressive wage model will complement the country’s minimum wage of RM1,500 by rewarding employees with high skills and productivity. “The current system in place is a minimum wage model, which only helps low-income earners and doesn’t take into consideration an employee’s productivity. “We are currently looking at other wage models that offer better pay for workers who have high productivity and skills,” he said.
