ANN/THE STAR – Malaysia’s Progressive Wage Policy (PWP) has raised median wages, with participants earning MYR200 to MYR250 more than current industry standards, according to the Economy Ministry.
Implemented as a pilot programme in June 2023, the PWP has achieved its primary objective of driving wage growth and promoting a more balanced income distribution.
In a statement to The Star, the ministry reported that PWP participants’ median salaries surpassed existing benchmarks. Entry-level employees under the scheme saw their 2024 median monthly salary rise to MYR2,200, an increase of MYR250 or 13 per cent above the standard RM1,950.
For non-entry-level employees, the median salary increased by MYR200 to MYR2,400, reflecting a nine-per-cent rise compared to the 2024 rate.
The ministry emphasised that the PWP’s positive impact on wages highlights its effectiveness in improving income levels and enhancing economic equity.
Median wage refers to the middle point of salaries where half of the workers earned less than the amount while the other half earned more.
The PWP is meant to see an increase in wages for employees earning between MYR1,500 and MYR4,999.
Selected companies will receive incentives of up to MYR200 per month for each employee in the entry level group and up to MYR300 per month in the non-entry level group. The government has set aside MYR50 million for the PWP pilot project.
The PWP is meant to see an increase in wages for employees earning between MYR1,500 and MYR4,999.
During the Budget 2025 announcement, Prime Minister Datuk Seri Anwar Ibrahim said following the pilot programme, the PWP will be fully implemented this year, with a budget of MYR200 million benefiting 50,000 workers.
The ministry said between June and August last year, a total of 756 employers had applied to be part of the programme.
This accounted for 76 per cent of the 1,000 employees target.
Of this number, 359 or 47 per cent had increased the wages of employees as per the salary guidelines.
A total of 43 per cent or 154 out of the 369 employers who had increased wages had also sent their employees for training that had gone on for a minimum of 21 hours.
This involved 1,307 employees.
For 2025, the government is targeting 50,000 employees to benefit from the PWP.
According to the ministry, the mechanism of implementation for the PWP this year will be the same as the PWP pilot project.
It is open to all sectors except for civil service and defence, social security firms, family-run businesses and activities involving organisations as well as diplomatic missions and consulate activities.
The incentives will be given to participating employers for three years between 2025 and December 2027.
To qualify for incentives, employers will have to fulfil the minimum 21 hours training a year requirement.
Alternatively, employees can fulfil this requirement through the Recognition of Prior Learning (RPL) method.
The incentives will be paid on a monthly basis.
The ministry will continue to hold PWP roadshows that are slated to take place from February to April this year, where employers can register for the PWP during the roadshow.
