THE Economy Ministry said the progressive wage policy would involve minimal additional costs to employers as the government would provide cash incentives to offset increased salaries.

It said employers would receive the incentives if they met conditions outlined in the annual wage increase guidelines issued by the government.

“Given the low participation rate of labour unions in Malaysia, the government will take appropriate steps to increase the number of workers joining unions through continuous exposure to the roles and benefits of unions to workers,” the ministry said in a written reply published on the parliament’s website today.

The progressive wage policy was aimed at raising wages and achieving fairer income distributions.

In 2022, the median wage was RM2,424 compared with the RM2,700 target (by 2025) in the 12th Malaysia Plan mid-term review. – Bernama, October 25, 2023.