85,000 companies in Malaysia have implemented Productivity-Linked Wage System

Malaysia’s Human Resources Ministry said 85,000 companies nationwide have implemented the Productivity-Linked Wage System (PLWS) since it was introduced in 2015.  Deputy Minister Datuk Mahfuz Omar said the system had benefited 4.3 million employees during the period.

“The implementation of PLWS reflects the dynamism of the relationship between workers and employers where workers contribute to the production process by providing workforce input, namely skills, ideas or innovation in work processes to produce goods and services. “The total added value generated by each employee is commonly referred to as employee productivity in which employees are rewarded in the form of wages, incentives or allowances paid by employers, thus reflecting their productivity,” he said.

He was speaking to reporter in Batu Gajah. “I hope the cooperation between employers and workers will be further enhanced, especially in improving the implementation of PLWS which will benefit both parties in terms of increased profits and income and productivity of both parties. “In addition, it can also realise the country’s aspirations of achieving a high-income economy and the reliance on low-skilled foreign workers replaced with skilled local workers,” he said.