RM64 million disbursed, 4,025 private employers join preogressive wage policy

KESUMA has disbursed RM64.08 million in Progressive Wage Policy incentives, benefiting 4,025 employers and 51,363 local workers

KUALA LUMPUR: The government has disbursed RM64,076,884.75 in cash incentives to 4,025 private sector employers participating in the Progressive Wage Policy (PWP) as of June 5.

The Ministry of Human Resources (KESUMA) said the empowerment initiative under the MADANI Economy framework has benefited 51,363 local workers as part of efforts to strengthen and progressively raise the wage scale of skilled employees.

The wholesale and retail trade sector, including the repair of motor vehicles and motorcycles, recorded the highest participation at 26.7 per cent, followed by manufacturing (15.7 per cent), professional, scientific and technical activities (11.1 per cent), education (7.4 per cent), and accommodation and food service activities (6.9 per cent).

“In terms of employer size, small companies accounted for 50.2 per cent of employers making claims. Large and medium-sized companies each recorded 18.4 per cent, followed by micro enterprises at 13.1 per cent,” the ministry said in a written reply to Manndzri Nasib (BN-Tenggara) in the Dewan Rakyat.

He had asked for the latest status of private sector compliance with the implementation of the PWP and the extent to which the cash incentives have been effective in encouraging wage progression for skilled local workers.

According to KESUMA, the incentive scheme has had a positive impact on raising the incomes of skilled workers, particularly professionals as well as technicians and associate professionals, who account for 45.9 per cent of the total workers involved.

Among professionals, the median basic salary increased by RM350, from RM2,900 to RM3,250, representing a 12.1 per cent increase, while the average basic salary rose by RM364.36, from RM2,930.74 to RM3,295.10.

For technicians and associate professionals, the median basic salary increased by RM250, from RM2,350 to RM2,600, or 10.6 per cent, while the average basic salary rose by RM294.38, from RM2,557.35 to RM2,851.72.