PETALING JAYA: The implementation of the Progressive Wage Policy acts as a new measure to reform the labour market, aiming to raise wages in line with productivity and experience, says Steven Sim.
These guidelines, he added, will serve as a reference for both workers and employers in determining appropriate starting salary rates for specific jobs. During the Budget 2025 announcement, Prime Minister Datuk Seri Anwar Ibrahim said that following the pilot programme for the Progressive Wage Policy in June, it will be fully implemented next year, with a budget of RM200mil benefiting 50,000 workers.
“As such, we need to have a meaningful and successful DGP so that the companies who exercise it can continue for long-term and at the same time can have a high productivity culture,” he said. “However, the objective of the government here is clear, which is to help employees especially those who are left out of the equation who do not see any increment periodically,” he said.