Zaqy Mohamad on Progressive Wage Model as 'superior' to 'blunt minimum wage'

July 2021

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Zaqy Mohamad on Progressive Wage Model as 'superior' to 'blunt minimum wage'

(Updated: )

The COVID-19 pandemic has shown that the Progressive Wage Model (PWM) is "superior" to a "blunt minimum wage", said Senior Minister of State for Manpower Zaqy Mohamad. Speaking in reply to Parliamentary questions on Tuesday (Jul 6), he said the PWM, which negotiates wage growth with tripartite partners, creates a sector-specific consensus on a suitable pace of growth. The "sectoral approach" has enabled the recent rollout of the PWM for the cleaning sector, as well as other sectors that are able to adjust to the model in the short term. 

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