PETALING JAYA: The Progressive Wage Policy (PWP) will complement the existing Minimum Wage Order and companies are not compelled to participate in it, according to frequently asked questions (FAQ) published on the PWP’s website.
“The Minimum Wage Order will continue to be enforced and only employers who abide by the order can apply to be a ‘progressive wage employer’,” it said in the website.
The PWP is unlike the Minimum Wage Order, where employers are obliged to ensure their workers receive a salary of not less than RM1,700 a month and failure to comply with the ruling will be an offence and liable to penalties under the National Wages Consultative Council Act 2011.
For the PWP, companies that are interested can register to participate in the programme voluntarily through an online application system.
“Only companies registered as a progressive wage employer can be considered to be recipients of incentives and they must fulfil a set of criteria,” it said.
According to the FAQ, selected companies will receive incentives of up to RM200 per month for each employee in the entry level group, and up to RM300 per month in the non-entry level group.
The PWP said incentives by the government will be temporary and it is not a permanent subsidy to encourage employers to participate in the PWP.
“When the increase in company revenue can balance the increase in salaries, then the government’s intervention through cash incentives are no longer needed,” it added.
Companies interested in learning more about the PWP can visit one of the 20 roadshows happening across the country until April 16 or visit https://gajiprogresif.gov.my.
