Prime Minister Datuk Seri Anwar Ibrahim said that Putrajaya aims to increase the wage share ratio to 45 per cent, which is 12.6 per cent more than what was recorded last year (32.4 per cent).
In a statement today, Anwar said that the move is one of the government’s initiatives to improve the labour market so that workers will consistently get higher wages and make the wage distribution system more balanced.
“At the same time, following the percentage of Malaysian workers’ income (wage share ratio) has decreased from 37.2 per cent in 2020 to 32.4 per cent in 2022, the government has set a target for this ratio to increase to 45 per cent of the total income,” he said after chairing National Economic Action Council (MTEN) meeting today (Aug 7).
Meanwhile, Anwar noted that the proposed progressive wage policy (PWP), which complements the minimum wage policy (MWP), will be voluntary, incentive-based and linked to productivity.
In a statement after the National Economic Action Council (MTEN) meeting on Monday (Aug 7), Anwar said that PWP would serve as a shift towards restoring the labour market, so national wages could be increased more consistently with a more balanced wage distribution.
“The proposed policy model was developed after MTEN took into account the views and interests of employers and workers.
“This policy, which complements MWP, will be followed by annual guidelines for progressive wages for each sector, occupation and level,” he added.
According to Anwar, about 62% of workers and 80% of companies welcomed the proposed PWP during the initial engagement sessions and reviews. As such, MTEN hopes that this policy will receive the participation of as many companies and workers as possible.
“MTEN believes that PWP is one of the labour market reforms to ensure that Malaysian workers are not burdened with the cost of living and can enjoy dignified work with decent wages, for the well-being of the people and to achieve the agenda of lifting the country’s economy,” he noted.
Following the discussion at MTEN on Monday, Anwar said that the proposed PWP will be brought to the next step, which is to engage in discussions and consultations with stakeholders, especially industry players, businesses and workers.
“This matter will be brought to the Cabinet to refine the implementation mechanism and explore the need to allocate funds as incentives for this policy, which will be determined based on the government’s financial position and policy requirements,” he said.
