How many companies will join the progressive wage pilot project?

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Up to 1,000 Companies to Participate in Progressive Wage Pilot Project

The Malaysian government plans to launch a pilot project for its progressive wage programme in June 2024, with an aim to involve up to a thousand companies. This initiative seeks to address wage stagnation and boost workers' incomes, with a particular focus on small and medium enterprises (SMEs).
Pilot Project Commencement and Scope

The progressive wage programme's pilot phase is scheduled to commence in June 2024. This initial phase is designed to include a significant number of participating entities, with the target set at approximately 1,000 companies. The selection of these companies will be based on factors such as policy objectives, sectoral requirements, and the principle of equality.
Incentive Structure for Participants

The programme will be incentive-driven and voluntary, offering cash incentives to companies that opt in. For "entry-level" companies, a subsidy of up to RM200 per worker will be provided for the initial 12 months, contingent upon annual salary increments that meet or exceed a specified threshold. Companies classified as "non-entry level" will receive RM300 per worker.
Financial Allocation and Company Focus

The federal government has allocated an estimated RM2 billion for this programme, though this figure is subject to revision based on the government's financial standing. Local SMEs are identified as the primary target for participation, with applications being processed on a first-come, first-served basis. A "star system" will be implemented to rate participating companies, fostering competition and encouraging the offering of competitive salaries to attract talent.

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How many companies will join the progressive wage pilot project?

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