KUALA LUMPUR: The Progressive Wage Policy (DGP) had exceeded its target of 50,000 participating workers, with 51,363 employees from 4,025 firms covered as at Dec 31, 2025.
Economy Minister Akmal Nasrullah Mohd Nasir said the policy had also contributed positively to wage growth, with entry-level workers recording a 15.79 per cent increase in median monthly wages to RM2,200 in 2025.
“Non-entry-level employees saw a 10.86 per cent rise in median monthly wages to RM2,438 over the same period,” he said in a written parliamentary reply.
Akmal said participating workers must receive salaries that meet the rates stipulated in the DGP wage guidelines, which were developed based on several factors, including median wages, inflation, unemployment, labour productivity and gross domestic product (GDP).
Under the policy, participating workers are also required to undergo at least 21 hours of training annually to enhance their skills and productivity.
Akmal said the policy emphasised mutual benefits for employers and employees, with salary increases expected to be accompanied by improvements in workers’ skills and productivity.
He said the government was studying ways to extend the policy’s coverage to more employers.
The government had allocated RM300 million to support the policy’s implementation from 2025 to 2027.
Akmal also said 4.36 million workers, or 61.8 per cent of the workforce, received monthly wages of between RM1,700 and RM4,999.