The government is evaluating the possibility of extending the incentive for employers under the Progressive Wage Policy (PWP) from 12 months to 24 months. This extension aims to enable employers to benefit from higher productivity and skilled workers, announced Economy Minister Rafizi Ramli.

Rafizi highlighted that this consideration is based on the impact assessment of a pilot project conducted 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," Rafizi said during a town hall session on the PWP.

An allocation of RM50 million has been designated for the PWP pilot project, which began in June, including incentive payments to 1,000 employers. Rafizi stated that the extension of the incentive for employers is anticipated to be implemented in October.

Additionally, Rafizi emphasized that employers should not view the PWP as an added cost. Instead, it is designed to accelerate 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.