On the Proposed Progressive Wage Model in Malaysia

By Azmil Akil

January 2024 FEATURE
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FOR YEARS, Malaysia has implemented a minimum wage policy. While this policy has undoubtedly provided some relief, rising costs of living have often outpaced wage hikes, leaving many workers struggling to make ends meet. In addition, minimum wage policies have not addressed the needs of semiskilled workers, who are often trapped between the minimum and higher-paying jobs.In light of this, Malaysia is exploring a new approach—the Progressive Wage Model. On 30 November 2023, a White Paper on the policy was...

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  • [1] Choy, N. Y., & Tay, C. (2023, November 30). Progressive wage to cover those with RM1,500- RM4,999 monthly salary, MNCs, GLCs exempted, White Paper proposes. The Edge Malaysia. https://theedgemalaysia.com/node/692117.
  • [2] A living wage is an amount that is considered sufficient to afford a minimum acceptable living standard.
  • [3] Kementerian Ekonomi, Malaysia. (2023). Kertas Putih Cadangan Dasar Gaji Progresif. Percetakan Nasional Malaysia Berhad.
  • [4] Federation of Malaysian Manufacturers (FMM). (2023). Voluntary and Pilot Based Implementation of Progressive Wage Model Will Provide the Flexibility in Adoption and Opportunity to Refine the Model to ensure Workability. Federation of Malaysian Manufacturers (FMM).
  • [5] Yunus, A. (2023, December 2). Govt urged to seek input from SMEs on progressive wage model. The Star. https://www.thestar.com.my/news/nation/2023/12/02/govt-urged-to-seek-input-from-smes-on-progressive-wage-model.
Azmil Akil

is a Project Researcher at Penang Institute. He holds a Master of Economics from Universiti Malaysia Sabah.