Deputy minister says 51,363 workers have benefited from the Progressive Wage Policy as of Dec 31, with the median wage for entry-level workers rising by 16%
KUALA LUMPUR: More than 51,000 workers have received wage increases under the government’s Progressive Wage Policy (PWP) as of the end of last year.
Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan (pic) revealed the figure during the Dewan Negara’s oral question-and-answer session.
He stated that 51,363 workers had benefited from the policy as of December 31. A total of 5,910 employers applied for the programme, with 4,025, or 83.4%, implementing the wage increases under its incentive conditions.
The wholesale and retail trade sector, including motor vehicle and motorcycle repair, accounted for the largest share of PWP incentive claims at 26.7%.
This was followed by manufacturing (15.7%), professional, scientific and technical activities (11.1%) and education (7.4%).
Khairul Firdaus highlighted the policy’s effectiveness in raising median wages. For entry-level workers with 12 months of service, the median pay rose by RM300 from RM1,900 to RM2,200, representing a 16% increase.
For employees with over 12 months of service, the median wage increased by approximately RM238.85 to RM2,999.15, or roughly 11%.
He said this shows the government’s approach not only encourages employers but also improves workers’ motivation and productivity.
He was responding to a question from Senator Datuk Abdul Halim Suleiman regarding the PWP’s effectiveness and private sector compliance.
In response to a supplementary question from Senator Dr Wan Martina Wan Yusof, the deputy minister acknowledged challenges in the policy’s two-year rollout.
These challenges included difficulties in implementing the 6% minimum wage increase, low training compliance among small employers, and limited awareness of online training platforms.
The PWP began as a pilot project from June to August 2024 with an allocation of RM50 million.
It has since received RM300 million for full implementation and is expected to benefit over 50,000 workers by 2027, as outlined in Budget 2025.
