The Minister of Economy, Rafizi Ramli announced today on X platform that the implementation of the Progressive Wage Policy will commence with a pilot project involving 1,000 companies starting next June.
This government initiative aims to align citizens’ wages with productivity increases and propel Malaysia towards high-income nation status. The pilot project will invite participation from five sectors: Manufacturing, Construction, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles, Information and Communication, and Professional, Scientific, and Technical Activities.
Company selection for the pilot will emphasise policy support, sectoral needs, and equity.
The pilot project will be evaluated in September 2024 to ensure policy readiness before the Progressive Wage Policy is fully implemented across all employers and sectors.
Employers meeting the eligibility criteria, with employees earning between RM1,500 and RM4,999, can claim cash incentives from the government.
Selected companies will receive up to RM200 per month for each entry-level employee and up to RM300 per month for each non-entry level employee.
