PUTRAJAYA: The private sector should follow the government’s lead in improving wages, says Human Resources Minister Steven Sim.

He said the Public Service Remuneration System (SSPA) is expected to have an economic spillover effect once it is implemented.

“I urge the private sector to follow the government’s move in improving employees’ wages, to appreciate their productivity and contributions,” he said in a statement yesterday.

Sim also encouraged companies to participate in the progressive wage policy pilot project currently in progress.

He said his ministry received recommendations from the National Wage Consultative Council regarding the new minimum wage and is preparing to present these recommendations to the Cabinet.

Sim’s comments echoed Prime Minister Datuk Seri Anwar Ibrahim’s appeal to the private sector, particularly companies that record substantial profits, to review their salary schemes to offer a more reasonable remuneration to their employees.

Anwar also suggested that the recent public service wage reforms should serve as a message for private companies to raise wages and ease the financial burden on workers.

Meanwhile, Communications Minister Fahmi Fadzil said the announcement of the SSPA marks the end of civil servants’ 12-year wait for better wages.

“The implementation of the SSPA beginning Dec 1 will see a big shift, focusing not only on wages but also on performance (of civil servants).

“Following this, increments and promotions will be based on performance,” he told reporters after the 19th Civil Service Premier Assembly here yesterday.

He emphasised the importance of integrity, citing Anwar’s directive that department heads who protect officers violating rules will also face consequences.

Regarding private sector wages, Fahmi said the progressive wage policy project is being implemented and will involve a RM50mil incentive from the government.

“This will gradually see their wages increase,” he said.

“I have also been made to understand that the minimum wage is being studied and it will be standardised across the public and private sectors.”

Health Minister Datuk Seri Dr Dzulkefly Ahmad said the announcement reflected the government’s concern, sensitivity and appreciation towards civil servants, particularly frontline workers.

“This is very welcoming for us in the ministry because we want to retain our specialists, and (for that) they must be well compensated to make them stay with us,” he said.

The government’s move to increase salaries of civil servants shows its commitment to ensure the welfare of government personnel, especially those in the police force, said Inspector-General of Police Tan Sri Razarudin Husain.

“It shows the government’s gratitude towards the sacrifice and commitment of civil servants in carrying out their duties.

“I am confident the good news will motivate civil servants further to provide a better and more efficient service to the public as those who perform well will be given a chance at promotion.”

https://www.thestar.com.my/news/nation/2024/08/17/sim-urges-private-sector-to-follow-suit-by-improving-wages