PETALING JAYA | According to the Human Resources Minister, V Sivakumar, the minimum wage of RM1,500 will be maintained when the progressive wage system is implemented by the government next year.
He claimed the progressive wage system would be used in conjunction with the minimum wage and increase the productivity, which benefits both employers and employees, Bernama reported.
“The minimum wage of RM1,500 is the baseline,” he said in Kuching after a meeting with labor officials and employers, unions and training providers.
To keep up with the economic growth, The progressive wage system will provide for gradual and phased wage increases. The system is expected to be put into effect in April or May, says Economy Minister Rafizi Ramli on Thursday.
Sivakumar said, the National Economic Action Council had stipulated that the progressive wage system was not mandatory for all private employers.
He adds that they aim to make sure employees who are skilled and talented are being paid correctly immediately, hence becoming a valuable asset to their employer. When the time comes employers will realize the importance of progressive wages.
“So, for the initial stage, we will let employers decide whether they want to use the progressive wage system or not,” he said.
