KUCHING: The minimum wage of RM1,500 is still maintained under the policy framework of the progressive wage system to be introduced by the government, said Human Resources Minister V. Sivakumar.
He said the progressive wage system, which was seen as the most relevant to be instituted in Malaysia, needs to be practised in tandem with the minimum wage and increase the productivity of workers so as to benefit employers as well.
The progressive wage system was a transition from a minimum wage model to a gradual and phased wage increase so that it corresponded to the country’s economic growth. Meanwhile, Sivakumar said the National Economic Action Council meeting chaired by Prime Minister Datuk Seri Anwar Ibrahim to detail the policy guidelines also stipulated that the implementation of the progressive wage system for employees was not mandatory for all private employers.
"In time to come, employers will gradually realise the need to implement progressive wages. So, for the initial stage, we will let employers decide whether they want to use the progressive wage system or not," he said.
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