According to the Ministry of Economy, the government planned to give participating firms cash incentives to offset the increasing employee wage expenses. Therefore, the progressive wage policy will incur little additional costs for them.
Bernama reported, it stated that if employers fulfilled the requirements specified in the government’s yearly wage rise standards, they would be eligible for monetary incentives.
According to the ministry, raising employee wages was mostly due to a collective wage setting based on the tripartite idea comprising companies, the government, and labor organizations.
“Given the low participation rate in labour unions in Malaysia, the government will take appropriate steps to increase the number of workers joining unions through continuous exposure to the roles and benefits of unions to workers,” the ministry said in a written answer published on the Parliament’s website today.
The progressive wage policy aims to achieve a more equitable income distribution and raise employee wages.
Compared to the aim of RM2,700 by 2025, as stated in the 12th Malaysia Plan Mid-Term Review, the median wage in 2022 was recorded at RM2,424.
According to the Ministry of Economy, the government planned to give participating firms cash incentives to offset the increasing employee wage expenses. Therefore, the progressive wage policy will incur little additional costs for them.