Malaysia is introducing a progressive wage policy that will raise workers’ wages gradually based on their skill or experience. Employers who participate in the program will receive cash incentives. The policy is expected to take effect in the second quarter of 2024.
The progressive wage policy is a government initiative to help narrow the income gap between low- and high-income earners. It will also help to improve the skills and productivity of the workforce.
Under the policy, employers will be required to pay their workers a minimum wage that is based on their skill or experience level. The minimum wage will increase gradually over time.
Employers who participate in the program will receive cash incentives from the government. The amount of the incentive will depend on the number of workers who are covered by the policy and the increase in their wages.
The progressive wage policy is expected to benefit over 2 million workers in Malaysia. It is also expected to boost the country’s economy by creating jobs and increasing productivity.
