Make progressive wage system mandatory, urges labour group

 

A labour rights advocacy group has rejected the government’s plan to make the proposed progressive wage system (PWS) voluntary instead of mandatory like the minimum wage.

This is because most employers will not raise wages if others do not, Labour Solidarity and Learning Resources Association (LLRC) secretary Gopal Kishnam Nadesan said.

“Only when the government makes the PWS mandatory for each sector, the playing field is levelled, and all businesses can compete fairly based on similar labour costs,” he said in a statement.

Gopal Kishnam Nadesan

He also urged the government to learn from the Singapore government, whose Progressive Wage Model failed in its initial stages because it was voluntary.

“But it became very effective after the Singaporean government made it mandatory, non-compliance of the wage scale would be fined. We must learn a lesson from this experience,” he said.

Last week, Economy Minister Rafizi Ramli announced that the government will give cash incentives to firms to encourage them to raise their employees’ salaries.

The incentive will be subject to an annual quota and on a first-come-first-served basis, adding the details will be unveiled during the tabling of Budget 2024 on Oct 13.

The PWS, which will complement the minimum wage, aims to restructure wages to enable a rise in wages based on skills and experience. - Mkini