Pilot wage plan extended until 2025

Sim 500 registered companies, half the government’s target:

KUALA LUMPUR – The three-month Progressive Wage Policy Pilot Project (PWP), scheduled from June to August, will likely be extended for an additional year, until June 2025.

Registration for the PWP opened on June 1, 2018. Steven Sim said that so far, 500 companies have expressed their interest.

The Human Resources Minister said yesterday, after attending a PWP town hall session in this city: “We’re targeting around 1,000 companies. Our goal is to continue the PWP for at least an year.”

He said that companies who have registered would receive confirmation of their participation in a week or so.

PWP is intended to increase wages for employees who earn between RM1,500 – RM4,999.

Companies that are selected will receive up to RM200 a month per employee for the entry-level group and up to RM300 a month per employee in the nonentry group.

The government has allocated RM50mil to the PWP Pilot Project.

The project is open for construction, manufacturing and wholesale and retail trade as well as repair of motor vehicles and bikes, information and communications, professional, scientific and technical activities.

Companies participating in the PWP must provide documentation that confirms the employees attended and completed training and skill enhancement courses for at least 21 hour (over three days) from January to August of this year.

Sim had earlier stated that foreign and multinational companies are not eligible to take part in the PWP.

In response to questions, he stated that “the emphasis is on small and medium businesses (SMEs)”

He said that the pilot project was designed to identify any shortcomings in the PWP during its implementation phase over the next three month.

He said, “This is a trial period for us to see if there are any teething issues that we should address.”

He added that the allocation of RM50mil will be increased.

The PWP is a complement to existing wage initiatives such as the Minimum Wage Order and Productivity Linked-Wage System.

Sim, the MWO’s spokesperson, said that the minimum wage findings have been finalised. They will be discussed later this month by the National Wages Consultative Council.

He said there could be delays due to internal disputes in the Malaysian Trades Union Congress.

The National Wages Consultative Council Act stipulates that the minimum wage must be reviewed every two years. The government last reviewed the minimum wage in May 2022. It increased it from RM1,200 RM1,500.

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