A total of 51,363 workers have benefited from the Progressive Wage Policy (DGP) as at Dec 31 last year, with median wages rising by as much as 16% for entry-level employees.
Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan said 4,025 employers — or 83.4% of the 5,910 companies that applied — have implemented salary adjustments in line with the DGP incentive requirements.
The wholesale and retail trade sector, including motor vehicle and motorcycle repairs, accounted for the highest share of incentive claims at 26.7% respectively. This was followed by manufacturing (15.7%), professional, scientific and technical activities (11.1%) and education (7.4%).
In terms of wage impact, employees with 12 months of service recorded a RM300 increase in median pay, from RM1,900 to RM2,200, representing a 16% rise as at end-2025.
For workers with more than 12 months of service, median wages increased by RM238.85 to RM2,999.15, or about 11%.
“This shows the government’s approach not only incentivises employers but also strengthens worker motivation and productivity,” Khairul Firdaus said during the Dewan Negara session.
However, Khairul Firdaus acknowledged challenges over the two-year implementation period, including employers’ difficulty in meeting the minimum 6% wage increase requirement, low training compliance among small employers and limited awareness on application procedures and the use of online training platforms.
The DGP was first introduced as a pilot project from June to August 2024 with an allocation of RM50 million before being fully rolled out. Budget 2025 earmarked RM300 million for the initiative, which is expected to benefit over 50,000 workers through 2027.
