KUALA LUMPUR: The Progressive Wage Policy will remain voluntary, incentive-based and will not be mandatory, says Datuk Hanifah Hajar Taib.
The Deputy Economy Minister said that it will be up to companies to take up the progressive wage policy as it is aimed at incentivising the future of companies.
"If they do not register, we cannot force them. It is an incentive for the future of the company," she said in reply to a question from Datuk Andi Muhammad Suryady Bandy (BN-Kalabakan) during Ministers' Question Time.
Andi Muhammad had asked whether the Economy Ministry plans to impose a compound or fine on companies that do not implement the policy.
"That is why we are implementing a pilot project, and we will evaluate and improve on it after that,” she said.
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Hanifah said the policy was introduced to reform the private sector’s wage structure and is also intended to complement the minimum wage policy and the productivity-linked wage system.
She explained that the implementation of the policy will commence with pilot projects from June to August this year.
"The impact assessment of these pilot projects will be conducted in September 2024 to ensure the readiness of the policy before a comprehensive implementation of the progressive wage policy is decided," she added.
According to her, there are currently four implementation task forces, spanning across several ministries and agencies that have been established to execute the working plans and the detailed implementation mechanism of the policy.
