Pilot run of progressive wage model to start in June with 1,000 firms

KUALA LUMPUR: The pilot run for the progressive wage model will involve 1,000 companies that meet the requirements, says Rafizi Ramli (pic).

The Economy Minister said the pilot run will begin in June and involve companies that have workers earning between RM1,500 and RM4,999.

“The companies will be chosen with transparency based on the principle of equality, the needs of the sector and policy support,” he said during Ministers' Question Time in the Dewan Rakyat on Tuesday (Nov 28).

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He said the impact of the pilot run will be evaluated in September, to ensure the efficacy of the policy before its implementation.

The White Paper on the Progressive Wage Model will be tabled in the Dewan Rakyat on Thursday (Nov 30).

Rafizi said the progressive wage policy aims to address the issue of low pay and reform the salary structure especially in the private sector.

He said the model will include three basic features: voluntary implementation by employers; the government incentivising employers to encourage participation; and wages linked to productivity.

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Rafizi was responding to a question by Hassan Karim(PH-Pasir Gudang) on the timeline of implementation of the progressive wage model.

The White Paper is expected to detail the basic features and mechanism of the policy.