PETALING JAYA: The Human Resources Ministry has launched a voluntary pilot project under the Progressive Wage Policy (PWP), establishing a minimum wage of RM1,810 for entry-level positions in selected sectors.
According to the “Guidebook of Starting Basic Salaries and Annual Salary Increment for Selected Sectors”, entry-level pawnbrokers and moneylenders will start at RM1,810, while motorcycle riders and astrologers will begin at RM2,205.
Entry-level employees are defined as Malaysian employees in their first year of service at the company and in that position.
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This pilot project encompasses five sectors: manufacturing, construction, information and communication, professional scientific and technical activities and wholesale and retail trade, including the repair of motor vehicles and motorcycles.
Participating employers in the manufacturing sector can select up to 200 workers, while those in other sectors can choose up to 100 workers for the project.
The monthly basic salary range for semi-skilled and skilled employees is set between RM1,500 and RM4,999.
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However, elementary workers, managers, government-linked companies and multinational companies are excluded from the PWP.
Employers adhering to the PWP salary scale for entry-level employees will receive an incentive of up to RM200 per month for 12 months per eligible employee.
For non-entry-level employees who have been with the company for more than a year, the incentive increases to RM300 per month for 12 months. Employers are expected to match or exceed this salary increment.
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Non-entry-level employees are defined as Malaysian employees who have been in their current position within the company for more than a year.
The registration for the pilot PWP, which commenced in June, began on May 15, 2024, and will continue until August 31, 2024.
As of August 5, 1,094 companies have registered, with 443 applications submitted and 144 meeting the wage requirements.
Currently, 42 companies have claimed incentives for 183 employees. The government plans to disburse these incentives starting in October 2024.
This initiative aims to increase employee compensation to 45% of the gross domestic product by 2033, up from 32% in 2022.
