‘Strong support’ for progressive wage model


1,000 companies that meet with the requirements will be involved in the pilot run for the Progressive Wage Model (PWM), says Rafizi Ramli.

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 yesterday.

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

The minister 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 PWM will be tabled in the Dewan Rakyat on Thursday.

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

He said engagements were held in June with stakeholders as part of preparations to table the policy at the National Economic Action Council (EAC).

He added that engagements were held with the Malaysian Employers Federation (MEF) and the Malaysian Trades Union Congress (MTUC).

“It was presented to the EAC, which approved the plan.

“Representatives from the MEF and MTUC were involved in the discussions.

“It received strong support from the employers’ federation.

“The feedback from the unions was for the government to be mindful with regards to the semi-skilled workforce who have worked for 10-15 years and to ensure that they are not sidelined,” said Rafizi.

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