KUCHING: The government has made clear that the RM1,500 minimum wage will remain despite the introduction of the new proposed progressive wage.
Human Resources Minister V. Sivakumar said that the minimum wage will serve as the foundation of the wage structure, ensuring a fair outcome for everyone involved.
“Even with RM1,500, the wage should not go lower, especially considering the rising cost of living. I acknowledge that RM1,500 is still relatively low,” he said.
The hope is that more companies will adopt the progressive wage model, benefiting both employers and employees alike.
According to him, unlike the traditional minimum wage approach, which sets a fixed pay rate for all workers regardless of their skills or experience, the progressive wage system recognises and rewards individuals who advance in their careers and boost their productivity.
As workers acquire new skills, gain experience, and demonstrate better job performance, they will become eligible for higher wages, moving up along a wage scale.
“This system will motivate workers to learn new skills and improve their job performance, knowing that their efforts will lead to higher wages and advancement along the wage scale,” he told reporters during a ‘Labour Dialogue’ event at Raia Conventional here yesterday (Aug 26).
Moreover, this approach aids in retaining employees and talents.
Currently, Sivakumar noted that the government can only encourage companies to implement progressive wages since it is not yet mandatory.
He is aware that some employers hesitate to adopt it due to potential increases in operating costs.
Yet, he is optimistic that embracing a progressive salary system will foster the development of more skilled talents and human resources in the country.
“We have discussed this matter in the National Economic Action Council (NEAC) alongside other relevant ministries. We will further delve into the details, including the methods of implementation and incentives for employers,” he added.
Also present were Deputy Minister in Premier’s Department (Labour, Immigration, and Project Monitoring) Datuk Gerawat Gala, and Sarawak Labour Department director Awang Raduan Awang Omar.
