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Thursday, November 30, 2023

Rafizi details progressive wage plan for those earning under RM5k

The government has tabled a white paper outlining its plans for a progressive wage policy that would be implemented next year, with a proposal that it target workers earning less than RM5,000 per month.

Economy Minister Rafizi Ramli said that enrolment in the programme is voluntary but it would come with financial incentives for participating employers.

As a start, he proposed that employers can get a fixed incentive of up to RM200 per month for entry-level workers and up to RM300 per month for workers for a period of 12 months from the government.

He said a pilot programme would kick off in June next year involving 1,000 companies, with a focus on micro, small, and medium enterprises.

Elaborating on the policy, Rafizi said the wage ceiling and the incentives will be revised yearly, depending on the government’s financial situation.

He said there will also be a committee that annually reviews the proposed rates for annual increments to eligible workers based on economic sector and job role.

Further, the minister said there would be a star ranking system to evaluate companies enrolled in the programme based on two components.

According to the white paper, the first component has three basic elements - the number of workers being paid at or above the recommended annual increments; how much higher the increments are than the proposed rate; and how long a company is enrolled in the programme.

There is also a bonus component that evaluates companies based on the difference between the lowest and highest wage on their payroll, and the ratio of women working in the middle and top positions.

Rafizi said the purpose of the star rating system is to encourage healthy competition among companies in giving good wages.

[More to follow] - Mkini

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