KUALA LUMPUR: Guidelines for annual salary increments are expected to be released in May prior to the implementation of the Progressive Wage Policy pilot project, said Economy Minister Rafizi Ramli.
He said the Progressive Wage Policy pilot project would be implemented from June to August.
"To ensure the smooth running of this pilot project, a cross-ministry and agency management structure has been established.
"Four Implementation Task Forces for the Progressive Wage Policy have been set up and are working on the details of the implementation mechanisms for the Progressive Wage Policy, namely the Progressive Wage Policy Task Force, System Development Committee, Skills and Productivity Enhancement Committee, and Annual Salary Increments Guidelines Task Force," he said in a written response posted on the Parliament website on Thursday.
He was responding to a question from Tan Hong Pin (PH-Bakri) about the guidelines for annual salary increments for the registration of companies for the pilot project, in line with the timeline of the Progressive Wage Policy White Paper proposal.
Rafizi explained that the System Development Committee is responsible for developing the registration and selection system for companies to participate in the Progressive Wage Policy.
He said the Skills and Productivity Enhancement Committee ensures the development of training modules and skills enhancement.
"This committee is chaired by HRD Corporation and is providing training modules suitable for Micro, Small, and Medium Enterprises (MSMEs).
"Based on the modules provided, 73 per cent of registered courses cover non-technical training such as management, communication, supervision, and linguistics, while the remaining 27 per cent are technical courses.
"In addition, 2,000 free online training (e-Learning) sessions are also provided," he said.
He explained that MSMEs participating in the Progressive Wage Policy would be provided with incentive-based assistance as outlined in the basic features of the Progressive Wage Policy.
"The government will finance the costs for all companies participating in the Progressive Wage Policy through cash incentives.
"Registered companies that meet the specified criteria will receive incentives of up to a maximum of RM200 per month for entry-level employees and up to a maximum of RM300 per month if the company provides annual salary increments based on the annual salary increments guidelines to employees other than entry-level.
"A total of RM50 million has been allocated for the implementation of the Progressive Wage Policy pilot project, including incentive payments to companies participating in the Progressive Salary Policy," he said.
The Progressive Wage Policy White Paper was presented to Parliament on Nov 30 last year, among others, as one of the government's strategies to increase the median wage of workers, thereby increasing the share of compensation (CE) within the remaining period of the 12th Malaysia Plan and the next 10 years.