RM64 Million Disbursed Under Progressive Wage Policy, Benefiting Over 51,000 Workers

The government has disbursed more than RM64 million in cash incentives under the Progressive Wage Policy (PWP), benefiting 51,363 local workers through the participation of 4,025 private sector employers as of June 5.

The Ministry of Human Resources (MOHR) said the initiative, introduced under the government’s economy framework, is aimed at strengthening and gradually increasing wages for skilled local workers while encouraging employers to adopt progressive wage practices.

In a written reply in the Dewan Rakyat to Manndzri Nasib (Tenggara), who sought an update on private sector participation and the effectiveness of the incentives, the ministry said RM64,076,884.75 had been disbursed to participating employers.

KESUMA said the wholesale and retail trade sector, including motor vehicle and motorcycle repairs, recorded the highest participation at 26.7%, followed by manufacturing at 15.7%, professional, scientific and technical activities at 11.1%, education at 7.4% and accommodation and food services at 6.9%.

Small companies accounted for the largest share of employers claiming incentives at 50.2%, while large and medium-sized firms each represented 18.4%. Micro enterprises made up the remaining 13.1%.

The ministry said the programme has delivered positive wage growth, particularly for professionals as well as technicians and associate professionals, who accounted for 45.9% of workers under the scheme.

Among professionals, the median basic salary increased by RM350 to RM3,250, while the average basic salary rose by RM364.36 to RM3,295.10. For technicians and associate professionals, the median basic salary increased by RM250 to RM2,600, with the average basic salary rising by RM294.38 to RM2,851.72.

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