MEF Wants More Specifics On Progressive Wage Policy

Progressive Wage Policy

progressive wage policy

The Malaysia Employers Federation (MEF) stated that although employers are ready to execute the progressive wage policy, they need first tie up any loose ends. A pilot project is scheduled to launch in June of this year.

According to Datuk Dr Syed Hussain Syed Husman, President of MEF, greater pay based on the improvement in productivity among employers will draw more investors to the country. Employers will have to foot the bill if the pace of productivity development is to be accelerated. Therefore, before paying workers more, the Malaysian government should pay for their upskilling and reskilling in order to mitigate the additional load.

“In addition to ensuring that salaries are adjusted in accordance with productivity, work performance, skills, and experience, the progressive pay policy will guarantee that firms increase profits and productivity while customers receive better goods and services at reasonable costs.

Related link: Progressive Wage Policy In Malaysia Will Be Handled Carefully

“Under progressive wage models, workers will be eligible for higher wages as they demonstrate increased job performance and productivity, earn more experience, and obtain certified skills.”

The policy, according to Jason Loh Seong Wei, Research Head of Social, Law, and Human Rights at EMIR, is fair and balanced because it does not place direct obligations on companies; instead, the government supplements the implementation of compensation increases with monetary incentives.

He claimed that in addition to increasing production productivity, this would also improve training and development (T&D) through upskilling and reskilling.

According to a November report from the Ministry of Economy, over 80% of the chosen employers are open to taking part in the Progressive Wage Policy, provided that it is optional and permits them to assess the organization’s performance and financial standing prior to doing so.

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