Progressive Wage Policy pilot project may be extended till June next year, says HR Minister
KUALA LUMPUR: The three-month Progressive Wage Policy (PWP) pilot project may be extended till June next year, said Steven Sim.

"The PWP just opened for registration on 1 June. So far, about 500 companies have registered their interest.

"We are targeting about 1,000 companies to participate in the PWP, which will run between June and August," the Human Resource minister told reporters after attending a townhall session on the Progressive Wage Policy (PWP) here on Thursday (June 6).

He said that companies that have registered will be given confirmation of their participation under the PWP within a week or two.

"Our goal is for the PWP programme to operate for at least a year," he said.

The government has set aside RM50mil for the PWP pilot project.

The PWP was open to the construction, manufacturing, wholesale and retail trade, repair of motor vehicles and motorcycles, information and communication, and professional, scientific, and technical activities and aimed to increase the wages of employees earning between RM1,500 and RM4,999.

Selected companies will receive incentives amounting to a maximum of RM200 per month for each employee in the entry-level group, and a maximum of RM300 per month for each employee in the non-entry-level group.

However, companies participating in the PWP need to provide documentation confirming that the employees have attended and completed skill enhancement courses and training for at least 21 hours (three days) between January and August this year.

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Earlier, during the townhall session, Sim said that multinational and foreign companies were not eligible to participate in the PWP.

"Emphasis is on local companies, particularly small and medium enterprises (SMEs)," he said when responding to questions raised during the townhall session.

He said that the pilot project was aimed at identifying shortcomings of the PWP at the implementation stage during the next three months.

"The pilot project is a trial period to see if we need to make adjustments regarding teething problems," he said.

This includes increasing the RM50mil allocation set aside for the purpose if needed, he added.

He said that the PWP will complement existing wage initiatives, including the Minimum Wage Order (MWO) and the Productivity Linked-Wage System (PLWS).

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On the MWO, Sim said that the findings on minimum wages have been finalised and will be discussed by the tripartite National Wages Consultative Council later this month.

He said the council will hold several meetings before coming to a decision.

However, he said that there may be some delays in the matter due to internal disputes within the Malaysian Trades Union Congress (MTUC).

The National Wages Consultative Council Act requires a review of the minimum wage every two years.

The last time the government reviewed the minimum wage was in May 2022, increasing it from RM1,200 to RM1,500.
Progressive Wage Policy,PWP,Steven Sim,Wage Increase,Minimum Wage Order,Productivity Linked-Wage System,Skill Enhancement,SMEs,National Wages Consultative Council
KUALA LUMPUR: The three-month Progressive Wage Policy (PWP) pilot project may be extended till June next year, said Steven Sim.