PETALING JAYA | According to Prime Minister, Anwar Ibrahim, the government’s proposed progressive wage policy will be voluntary, incentive-based, and productivity-linked.
Anwar said that the policy can be a catalyst for the labor market and a means to improve salaries consistently and ensure a fairer distribution of wages in his statement after a National Economic Action Council (NEAC) meeting.
“NEAC hopes that this policy will receive the support and participation of as many companies and workers as possible,” he said.
Rafizi Ramli, the economy minister, claimed last Friday that businesses had reacted favorably to the government’s progressive wage program and he had earlier made a suggestion that Putrajaya’s progressive compensation strategy would result in making annual salary increases mandatory.
“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.
Anwar further stated that after the policy is developed, annual progressive salary recommendations will be established for each industry, profession, and level of labor.
“The policy model is being proposed after considering the perspectives and interests of both employers and workers,” he said.
