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| Median wages for entry-level workers participating in the first phase of the progressive wage policy have increased, says the Economy Ministry. — Photo The Star/ANN |
PETALING JAYA — The Progressive Wage Policy (PWP) has given median wages the much-needed boost, with the programme’s participants earning RM200 to RM250 more than current standards, according to the Economy Ministry.
The pilot run of the PWP, which began in June last year, has yielded the intended results, which is to increase wage growth and achieve a balanced distribution, it added.
In a statement to The Star, the ministry said the median salaries of PWP participants were higher than current standards.
“For entry-level employees, the 2024 monthly median salary rate was RM1,950, while the PWP median salary was RM2,200 a month, which was an increase of RM250 a month, or 13 per cent higher,” it said.
As for non-entry level PWP employees, the median salary increased by nine per cent or RM200 a month to RM2,400 from the 2024 rate.
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 RM1,500 and RM4,999.
Selected companies will receive incentives of up to RM200 per month for each employee in the entry level group and up to RM300 per month in the non-entry level group. The government has set aside RM50mil for the PWP pilot project.
The PWP is meant to see an increase in wages for employees earning between RM1,500 and RM4,999.
Selected companies will receive incentives of up to RM200 per month for each employee in the entry level group and up to RM300 per month in the non-entry level group. The government has set aside RM50mil for the PWP pilot project.
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 RM200mil 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.
“Employees and employers appeared to have welcomed the government’s move to introduce the PWP on a voluntary basis and both sides have responded to the wage hike incentive offered by the government positively,” it said. — THE STAR/ANN
