Reported by The Star, Rafizi Ramli stated that 1,000 enterprises that match the conditions will participate in the progressive wage model pilot program.
According to the Minister of Economy, the trial program will start in June. It will feature businesses with employees making between RM1,500 and RM4,999.
“The companies will be chosen with transparency based on the principle of equality, the needs of the sector and policy support,” he said during Ministers’ Question Time in the Dewan Rakyat on 28 November.
He said that an evaluation of the pilot program’s outcomes will take place in September to verify the policy’s efficacy prior to its implementation.
The Dewan Rakyat is scheduling the presentation of the Progressive Wage Model White Paper on Thursday, 30 November.
According to Rafizi, the progressive wage strategy seeks to change the compensation system. Particularly in the private sector, and address the issue of low pay.
According to him, the approach will have three main components: pay related to productivity, employers voluntarily implementing it, and also government incentives encouraging employers to encourage participation.
Rafizi was answering a query regarding the progressive wage model’s implementation schedule posed by Hassan Karim (PH-Pasir Gudang).
The White Paper will cover the fundamental components and workings of the policy.
