Budget silent on progressive wage policy despite govt statements, says Radzi

Budget silent on progressive wage policy despite govt statements, says Radzi

The Putrajaya MP notes that economy minister Rafizi Ramli had said detailed plans would be unveiled on Friday.

Putrajaya MP Radzi Jidin said the failure to provide details on the proposed progressive wage policy sends a negative signal to both the workforce and the business community. (Facebook pic)
PETALING JAYA:
There was not a single mention of the progressive wage policy in the 2024 budget tabled last Friday, says an opposition MP.

Radzi Jidin (PN-Putrajaya) said this is despite the various announcements made by economy minister Rafizi Ramli that detailed plans for the policy would be unveiled during the budget speech.

“There were no details about the model or its implementation date either,” Radzi said when debating the supply bill in the Dewan Rakyat today.

“The absence of it (in the budget) creates uncertainty and sends a negative signal to both the workforce and the business community.”

In August, Rafizi said Prime Minister Anwar Ibrahim had hinted at some figures for the allocation of funds for the progressive wage policy.

The economy minister later said employers would receive cash incentives after submitting the relevant documents as proof of having fulfilled the requirements of the policy.

While the policy was approved at the Cabinet level earlier this year, the intricacies of its implementation and the impact it would have on various sectors have remained largely unknown.

Anwar had said the government’s proposed progressive wage policy would be voluntary, incentive-based and productivity-linked.

In his speech, Radzi also posed several questions about the government’s strategy regarding the policy, particularly in terms of financial commitments and potential subsidies.

“Is it really going to involve subsidies? If so, what is the amount? Will providing subsidies for the progressive wage policy represent a new financial commitment to the government’s expenditure?”

As such, he said, announcing its financial commitment in the 2024 budget might be premature if the progressive wage policy is not yet well-defined.

“That’s why I would advise the government to have a more detailed discussion before making any further statements. It is essential to work thoroughly and only make things known once there is a clear framework,” he said.

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