KUALA LUMPUR – The proposed Progressive Wage Coverage might be delivered to the Cupboard for fine-tuning and to check the necessity to present funds as incentives for its gradual implementation, mentioned Datuk Seri Anwar Ibrahim (image).
The prime minister mentioned this is able to be finished in response to the nation’s monetary place and coverage wants.
He mentioned the coverage was mentioned on the Nationwide Financial Motion Council (NEAC) assembly right this moment as a shift in the direction of job market restoration in order that salaries could be elevated extra constantly and distributed extra evenly.
“NEAC is of the view that the Progressive Wage Coverage is likely one of the job market reforms to make sure Malaysian employees will not be burdened by the price of residing and might get pleasure from work with respectable salaries to ensure the individuals’s well-being and realise the agenda of uplifting the nationwide economic system,” he mentioned in a press release right this moment.
Anwar mentioned this coverage mannequin was proposed after NEAC had thought-about the views and pursuits of employers and employees.
He mentioned the incentive-based, productivity-linked coverage is voluntary in nature and is supposed to enhance the Minimal Wage Coverage, and it could include tips on annual progressive salaries for each sector, occupation and degree.
Anwar mentioned preliminary engagements and surveys confirmed that 62 per cent of employees and 80 per cent of firms welcomed the proposed options of the coverage and NEAC hoped it could be effectively obtained and contain the widest participation attainable of firms and employees.
“The subsequent step is to carry discussions and engagements with events, particularly trade gamers, companies and employees,” he mentioned.
The prime minister mentioned wage was a basic difficulty which might not be uncared for.
Anwar mentioned based mostly on the First Quarter 2023 Staff’ Wage Statistics Report (Formal Sector) which was tabled final week, greater than two million Malaysian employees had been nonetheless incomes lower than RM2,000 a month.
He mentioned the state of affairs was extra worrying for teens aged 20-24 as their median wage was solely RM1,682 a month, and a lot of the employees might solely hit the highest wage degree of RM3,500 on reaching 40-49 years of their profession.
On the similar time, in view that the wage share ratio of Malaysian employees had dropped from 37.2 per cent in 2020 to 32.4 per cent in 2022, the federal government had set a goal to boost this ratio to 45 per cent of whole revenue, he added.
Anwar mentioned the Gagasan Ekonomi MADANI: Memperkasa Rakyat (MADANI Financial Framework: Empowering the Rakyat) had set out the nation’s route for the medium time period, particularly to place the nation because the main economic system in Asia and among the many 30 largest economies on the planet. – BERNAMA / pic TMR FILE