The Ministry of Human Resources has announced that the progressive wage pilot project, scheduled to commence in June, will encompass five key sectors.
These sectors comprise construction, manufacturing, wholesale and retail trade (including motor vehicle and motorcycle repair), information and communication, and professional, scientific, and technical activities.
In a statement on Thursday (May 16), the ministry said that the federal government had approved the implementation of the voluntary pilot project, which is set to run from June to August this year, with an allocation of RM50 million and the participation of up to 1,000 employers.
Starting from May 15, companies interested in partaking in the pilot project can voluntarily register through the progressive wage policy portal.
Selected companies will receive incentives, with a maximum of RM200 per month per employee for the entry-level group, consisting of individuals who have served in their current company and position for less than a year.
Additionally, the non-entry-level group, comprising employees who have held positions in the company for over a year, will receive a maximum of RM300 per month per employee.
Employers can begin making incentive claims from June, as stated by the ministry.
Furthermore, the ministry emphasised that the companies participating in the pilot project must furnish documentation confirming that employees had completed at least 21 hours or three days of skills improvement training.
“The progressive wage policy underscores the government’s commitment to labour market reform, aimed at enhancing workers’ incomes, in tandem with increased productivity. This new policy introduction will complement existing wage initiatives, such as the Minimum Wage Order and the Productivity Linked-Wage System,” the ministry said. – The Edge Malaysia
