Over 27,000 Workers Benefit From Progressive Wage Policy - Sim

BUKIT MERTAJAM, Nov 22 (Bernama) -- More than 27,000 workers have benefited from the Progressive Wage Policy (DGP), reflecting the industry’s confidence in an emolument model based on skills and productivity over the past 11 months, said Human Resources Minister Steven Sim.

He said that based on Social Security Organisation (Perkeso) data, 2,489 employers are now participating in the initiative, showing the strong effectiveness of the policy in workplaces.

“More than 45 per cent of workers in the professional to machine operator categories have enjoyed wage increases of RM300 or more, with 22 per cent of beneficiaries being youths. This is an important indicator that the DGP can attract, retain and develop young workers who are critical to boosting national productivity.

“The rising participation is also driven by direct benefits to employers, namely monthly financial incentives paid directly by Perkeso until 2027, along with access to a more skilled, productive and stable workforce,” he said in a statement after attending a DGP engagement session and appreciation ceremony for DGP employers here today.

He said the voluntary and phased approach of the DGP also gives employers, especially Small and Medium Enterprises (SMEs), room to adjust its implementation according to their operational capacity.

Seeing the achievements so far, Sim said the government is urging more employers to join the DGP as a strategic investment in strengthening their companies’ competitiveness.

He described the DGP as a structural wage reform that ensures genuine skill improvements are translated into commensurate wage rewards, supporting the national objective of building a more equitable, progressive and sustainable labour market.

On another matter, Sim said the government maintains a firm stance of not compromising on issues of worker exploitation, including cases involving foreign workers, with Malaysia receiving international recognition for its commitment to combating labour exploitation and protecting workers’ rights.

He stressed that the government takes all aspects of worker welfare seriously, including complaints, labour law enforcement, wage payments and the provision of accommodation, adding that every report relating to worker exploitation will be scrutinised and appropriate action taken.

“We are very firm on labour laws. Malaysia ensures that worker exploitation does not occur, whether involving local or foreign workers, and we cannot compromise,” he said.

Sim said this when asked to comment on international media reports quoting United Nations human rights experts expressing renewed concern over ongoing exploitation, deception and debt bondage involving Bangladeshi migrant workers in Malaysia.

-- BERNAMA