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Malaysia’s Progressive Wage Policy Officially Implemented

Posted LnCoadmin

Starting January 2025, Malaysia will implement the Progressive Wage Policy (PWP).
The initiative is designed to help employers reduce the cost burden when adjusting employees’ salaries, while enabling employees to enjoy fairer wage growth supported by training that enhances skills and work performance.

FAQ:

1. What is PWP?

The Progressive Wage Policy is supported by SOCSO and applies to local full-time employees earning between RM1,700 and RM4,999.
It covers most industries, excluding public administration, domestic employment, and multinational organizations.

2. How much can new employees get?

  • Salary range: RM1,700 – RM4,999
  • Incentive up to RM200 per month
  • Maximum claim period: 3 years
  • Incentive amount matches the salary increment but is capped at RM200 (can be claimed in stages until capped)

3. How much can existing employees get?

  • Salary range: RM1,700 – RM4,999
  • Incentive up to RM300 per month
  • Maximum claim period: 3 years
  • Employers must provide at least 6% annual salary increment

4. Is there any other terms & conditions?

Training Requirement

To be eligible, employees must complete:

  • At least 21 hours of training annually, or
  • A total of 42 hours across 2025–2026 (hours can be carried forward)

Training may include:

  • Physical courses
  • Online learning
  • In-house training
  • RPA (Recognition of Prior Accreditation): recognition of employees’ past work experience or achievements without repeating training

 

The Progressive Wage Policy offers benefits for both employers and employees:

  • Employers receive SOCSO support to ease the cost of salary increments
  • Employees enjoy salary growth while enhancing their skills and career opportunities

This policy provides a structured approach to wage progression while supporting a stronger, more competitive Malaysian workforce.

**Last updated by 17.09.2025