PETALING JAYA: The government’s proposed progressive wage policy will be voluntary, incentive-based and productivity-linked, says Prime Minister Anwar Ibrahim.
“The policy can be a catalyst for the labour market and a means to improve salaries consistently and ensure a fairer distribution of wages,” said Anwar in a statement after a National Economic Action Council (NEAC) meeting.
“The next step is to hold discussions with stakeholders, especially industry players, businesses and workers,” he said.
After engagements with stakeholders, the matter will be brought to the Cabinet for further deliberation on its gradual implementation and the funds needed for incentives.
Anwar added that preliminary engagement sessions and reviews revealed that 62% of workers and 80% of companies are in favour of the proposed progressive wage policy, along with its specified features.
“NEAC hopes that this policy will receive the support and participation of as many companies and workers as possible,” he said.
Last Friday, economy minister Rafizi Ramli said employers had reacted positively to the government’s progressive wage policy.
“SMEs have been informed about the policy because we want to get their views and, to date, they have been very positive.
“There is no point in me having an idea when I have not tested it with the stakeholders. The largest stakeholders are employers and it’s looking positive,” he said.
Rafizi had also previously hinted that Putrajaya’s plan for progressive wages could entail making annual salary increments mandatory.
In his statement, Anwar also said annual progressive wage guidelines will be established for each sector, occupation and level of work after the policy is drawn up.
“The policy model is being proposed after considering the perspectives and interests of both employers and workers,” he said.
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