Malaysia’s progressive wage policy sees 4,025 employers and 51,363 employees participating by end-2025, aiming to boost incomes in line with productivity.
KUALA LUMPUR: A total of 4,025 employers involving 51,363 employees have participated in the Progressive Wage Policy and met the conditions for salary increases.
Economy Minister Akmal Nasrullah Mohd Nasir said the government will continue to review the PWP salary guidelines as the period given was until 2027.
“So for this year, insya-Allah, I will try to look carefully at how this progressive wage policy can continue to be implemented,” he said in the Dewan Rakyat.
He stated that cooperation from the private sector is needed to increase workers’ salaries in line with better productivity.
The PWP is implemented to reform the labour market and raise workers’ income in line with increased productivity.
Employers receive cash incentives after raising employees’ salaries according to the PWP wage guidelines.
Akmal Nasrullah said the guidelines are intended to ensure employees receive wages commensurate with the cost of living.
The 13th Malaysia Plan sets a median salary and wage target of RM3,500 per month by 2030.
In 2024, the median monthly salary increased to RM2,793 from RM2,602 in 2023, an annual growth rate of 7.3%.
He also noted that the Minimum Wage Order 2024 has been gazetted, effective Feb 1, 2025.
The minimum wage has increased to RM1,700 per month from RM1,500 per month previously.