ECONOMY Minister Rafizi Ramli said employers would receive cash incentives after submitting the relevant documents as proof of having fulfilled the requirements of the progressive wage policy. 

He said employers needed to raise workers’ wages first and then produce evidence before the government could give them the incentives. 

“The government will not give incentives just like that (without proof). This cash incentive is important to encourage employers, especially among micro, small, and medium enterprises, to participate in this policy. 

“Since the allocation is determined by the government, it will not be a financial burden to the government as (the incentives) will be implemented on a first-come, first-served basis,” he said when winding up the debate for his ministry at a special Dewan Negara session on the 12th Malaysia Plan mid-term review today. 

Rafizi said any employer who applied and met the conditions should get the incentives unless the quota was already full based on the government allocation for the year, in which case the employer would have to wait till next year. 

He said the policy is also linked to productivity as workers are required to attend government-recognised skills training to remain on the progressive payroll. 

“To remain on the progressive payroll, they need to meet the training requirements. Employees then would be able to enhance their talent and marketability as well as increase productivity at work. 

“This will balance the need for better wages while being fair to employers who can also benefit from better productivity,” he said. 

The allocation to implement the policy, however, would depend on the government’s fiscal capacity, he added. – Bernama, September 26, 2023.