Speaking during minister’s question time in the Dewan Rakyat today, Hanifah said the policy was aimed at incentivising the future of companies.

“We are not sure that this initiative is best for implementation. That is why we are implementing a pilot project, and we will evaluate and improve on it after that,” she said.

She was responding to an additional question from Andi Suryady Bandy (BN-Kalabakan), who asked whether the ministry plans to impose a compound or fine on companies that do not implement the policy.

Hanifah said the policy, which was introduced to reform the private sector’s wage structure, was also intended to complement the minimum wage policy and the productivity-linked wage system.

“As announced at the last Parliament sitting, the implementation of the progressive wage policy will begin with a pilot project from June to August 2024.

“The impact assessment of this pilot project will be carried out in September 2024,” she said.