Govt urged to make progressive wage policy clear and transparent

PETALING JAYA: Employers have called on the government to provide clear guidelines and enforcement to ensure cash incentives for the adoption of the progressive wage policy are effectively used.

Associated Chinese Chambers of Commerce and Industry of Malaysia’s (ACCCIM) SMEs committee chairman Koong Lin Loong said clear guidelines would be key to preventing abuse of the cash incentive by irresponsible parties.

“The incentive requirements should be based on the increased productivity and output of businesses that are proven to be due to any increment in wages.

“This ensures that money only goes to those who have proven themselves, effectively funding industrial growth and innovation,” he said.

Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said a transparent rollout of the cash incentives would be the key to getting local businesses to adopt a progressive wage policy.

“All the relevant terms and conditions need to be defined clearly so that employers will be able to understand and decide for themselves if they can financially afford to implement the progressive wage policy.

“Eligible employees should also be made to undergo mandatory upskilling and reskilling to improve their productivity to ensure the cash incentive is put to good use in helping overcome the skilled worker shortage,” he said.

Bumiputra Retailers Organisation (BRO) president Datuk Ameer Ali Mydin called on the government to prioritise getting big industry players on board first to trigger a ripple effect across industries.

“With big industry players as the first adopters, smaller industry players will feel more assured and motivated to adopt a progressive wage policy, especially if it becomes an industry standard,” he said.

Economy Minister Rafizi Ramli had announced on Tuesday that employers would be eligible to receive cash incentives after fulfilling the requirements of the progressive wage policy.