The government will not arbitrarily allow the implementation of the progressive wage policy but will instead take into account the ability of employers and the current state of the country's economy, said Economy Minister Rafizi Ramli.
In a statement, he highlighted that the unique features of PWM distinguished it from other policies such as the minimum wage policy and the productivity-linked wage system.
The cash incentives for employers under the progressive wage model are RM200 per month for entry-level employees, and RM300 a month for existing workers.
The progressive wage model will focus its pilot run on industries that are critical to Malaysia’s economic restructuring beginning June next year, with an allocation of RM30 million, Economy Minister Rafizi Ramli said.
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