The government is set to commence a pilot project for its proposed progressive wage policy in June next year, involving the participation of 1,000 selected firms.
Economy Minister Rafizi Ramli made the announcement in the Dewan Rakyat today, adding that the project will focus on employees earning salaries between RM1,500 and RM4,999.
The selection of companies will be based on certain criteria, he said.
“They are selected based on the principles of equality, the needs of the industry and support towards the policy,’’ he said in Parliament.
The minister said the pilot project will undergo a thorough review in September next year to gauge its effectiveness.
This will then be used as a guide on the official rolling out of the policy nationwide.
Rafizi also emphasised the importance of the policy, highlighting its role in restructuring the wage system and elevating the living standards of workers in various sectors.
Earlier, he addressed concerns about the policy’s impact on employers, assuring that it would not be overly burdensome.
Rafizi also stressed that such a policy is essential, considering the stagnation and regression of wages over the years.
Previously on October 25, the Economy Ministry had said that progressive wage policy is expected to involve minimal additional costs to employers as the government intended to provide cash incentives to participating employers to offset the increased wage costs.
Employers will receive cash incentives if they meet the conditions outlined in the annual wage increase guidelines to be issued by the government, it said.
