PUTRAJAYA, May 31 — The implementation of the Progressive Wage Policy and the Minimum Wage Order will help boost workers’ incomes and drive Malaysia in speeding up growth of salary rates.

The Human Resources Ministry (Kesuma) said in a statement today that the implementation of both policies will also help tackle issues linked to low Gross Domestic Product (GDP).

"It is also in line with the Mid Term Review of the 12th Malaysia Plan to boost wages and achieve a more balanced distribution of income and is based on productivity and aimed at ensuring fairness to both employees and employers through a feedback concept,” the ministry said.

The government had earlier agreed to implement a pioneer project for the progressive wage policy from June to August involving 1,000 employers on a first come, first served basis, the ministry said, adding that it was implemented as part of the government’s commitment to reform the workforce market with the aim of boosting workers’ wages according to increased productivity.

"The introduction of this new policy will complement the existing wage initiatives — the minimum wage order and the Productivity Linked-Wage System (PLWS),” the ministry added.

Kesuma also stressed its commitment to help workers ensure their incomes through the implementation of the minimum wage order, as its implementation has helped raise the incomes of low-skilled workers.

Statistics show that around 875,000 workers in the private sector in Malaysia that earned less than RM1,500 now enjoyed the minimum wage following after the latest of five minimum wage orders introduced since 2012, ensured a uniformed minimum wage of RM1,500 a month throughout the country, the ministry said.

"The spread of information and sharing of analysis on wages are vital to raise awareness and help stakeholders, including government agencies, employers and workers’ unions to plan holistically for the economic development of the country,” the ministry added. — Bernama