Rafizi: Employers to receive financial incentives for implementing progressive wage policy
KUALA LUMPUR, Sept 26 — Employers who raise their employees’ salaries under the progressive wage policy will receive cash incentives from the government, Economy Minister Rafizi Ramli announced today.
The incentive is meant to encourage employers, especially small and medium enterprises (SMEs), to participate in the policy.
“Employers will receive a cash incentive that will be channelled after they submit relevant documents as proof of having met the requirements of this policy,” Rafizi said when winding up his debate at the Dewan Negara’s special session on the 12th Malaysia Plan Mid-term Review.
“It is important to encourage employers to participate in this policy, especially SMEs.”
The incentive will be subject to an annual quota and will be on a first-come-first-served basis, he said.
“Whichever one applies and meets the requirements, will get the incentives. Those who can’t, because the quota has been met because of the provisions that the government has for that year, will have to wait for next year,” Rafizi said.
Last month, Rafizi said the progressive wage system policy has been approved at the Cabinet level and the details will be tabled during the upcoming Budget 2024 in October.
The system is expected to be implemented in April or May next year.
The progressive wage policy is a new labour market policy that aims to systematically raise workers’ wages and will complement the minimum wage policy.
It entails a wage structure that aims to uplift workers’ low wages by upgrading skills and improving productivity. Employers will be required to raise wages for their employees gradually based on their skills and experience.
