Govt will not arbitrarily impose progressive wage policy - Rafizi

The government will not arbitrarily implement the progressive wage policy but will instead take into account the ability of employers and the state of the country’s economy, Economy Minister Rafizi Ramli said.

He said it was because the implementation was voluntary and involved incentives from the government.

“We cannot impose arbitrarily, like a minimum wage order, because we also have to take into account the ability of companies, employers and the economy.

“The largest employers in the country are micro, small and medium enterprises (MSMEs) and 97 percent of business entities in our country are MSMEs.

“If we make it mandatory, some (employers) will go out of business, some will lose their jobs so we have to balance it. That’s why the approach is that we take into account the ability of employers, must involve incentives from the government as well as being voluntary,” he added.

He said this after officiating at a grant presentation ceremony under the People’s Income Initiative programme and a townhall session with the student leadership of Universiti Teknologi Mara Selangor branch at UiTM Puncak Alam, Kuala Selangor last night.

According to Rafizi (above), his ministry and the Human Resources Ministry only focus on private sector salaries, while Prime Minister Anwar Ibrahim manages the study of the Public Service Remuneration System.

“The progressive wage policy has a different challenge. It’s not just a matter of money but it’s also how we (the government) want to convince employers to raise wages gradually.

“For the civil service remuneration system, the government has to ensure that the financial resources are sustainable enough,” he said.

Earlier, Rafizi submitted a grant amounting to RM6,961,500 to the UiTM Student Affairs Division to carry out two projects – the mapping and monitoring of the People’s Income Initiative programmes as well as the organisation of a financial literacy course for the participants conducted by UiTM Selangor Branch.

- Bernama

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