OVER 51,000 workers across Malaysia have received salary increases through the implementation of the Progressive Wage Policy (DGP), with the government reporting measurable improvements in wages and reduced income disparity among private sector employees.
Human Resources Minister Datuk Seri R Ramanan said 51,363 workers had benefited from the policy as of 5 June, involving 4,025 employers who met the eligibility requirements for government incentives.
He said the government had allocated more than RM64 million in incentives to the five highest-participating sectors under the DGP during the period.
The full implementation of the Progressive Wage Policy began in January 2025 with a RM300 million allocation running until 2027, with the initiative expected to benefit 50,000 workers.
"The wholesale and retail trade sector, including motor vehicle and motorcycle repair activities, recorded the highest participation in the DGP at 26.7 per cent, followed by the manufacturing sector at 15.7 per cent and professional, scientific and technical activities at 11.1 per cent.
"Meanwhile, education accounted for 7.4 per cent, while accommodation and food and beverage service activities recorded 6.9 per cent," he said in a written parliamentary reply published on the Parliament website.
Ramanan said small companies recorded the highest participation among employers applying for incentives, accounting for 50.2 per cent of total claims.
Large and medium-sized companies each represented 18.4 per cent of participating employers, while micro-enterprises accounted for 13.1 per cent.
He was responding to a question from Muhammad Ismi Mat Taib (PN-Parit), who asked about the effectiveness of the DGP implementation and its impact on reducing income disparities among younger private sector workers.
Assessing the policy’s impact, Ramanan said the median salary of participating workers increased by RM290, or 13.8 per cent, rising from RM2,100 to RM2,390.
He added that younger workers recorded a higher median wage growth rate of 13 per cent compared with 10.6 per cent among adult workers, indicating that the policy had contributed towards narrowing the income gap between the two groups.
"Before the implementation of the DGP, the gap between adult workers (RM2,300) and young workers (RM2,000) stood at RM300.
"After the DGP was implemented, the income gap between adult workers (RM2,544) and young workers (RM2,260) narrowed to RM284.
"This shows that the DGP not only increased workers’ wages in absolute terms but also accelerated income growth among younger employees, reducing the wage gap with adult workers," he said.
Ramanan said the government would continue monitoring the implementation of the Progressive Wage Policy and conduct impact assessments periodically to evaluate its effectiveness and determine whether the initiative should be continued in the future. - July 7, 2026
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