An allocation of RM50 million has been set aside for the implementation of the PWP pilot project, which began last June, including incentive payments to 1,000 employers.

KUALA LUMPUR (Aug 6): The government will look into the need to extend the incentive for employers under the Progressive Wage Policy (PWP) from 12 months to 24 months to enable employers to benefit from high productivity and skilled workers under the programme, said Economy Minister Rafizi Ramli.

He said that this was based on the impact assessment made of the pilot project which was carried out from June to August 2024.

“This pilot project is for us to see how this system operates, as well as the feedback we can get.

“We want to make sure the learning curve that we have put in the implementation approach is as best as possible,” he said during a town hall session on the PWP here on Tuesday.

An allocation of RM50 million has been set aside for the implementation of the PWP pilot project, which began last June, including incentive payments to 1,000 employers.

Rafizi said the extension of the incentive for employers is expected to be implemented in October.

At the same time, he said employers should not view the PWP as an additional cost for them, because it is actually aimed at accelerating the improvement of workers' skills in small and medium enterprises.

“They (skilled workers) will be able to handle complicated matters to create value (to the company),” he added.

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