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85,000 companies have implemented Productivity-Linked Wage System - Mahfuz

Last Update: 25/04/2019

BATU GAJAH, April 25 (Bernama) -- A total of 85,000 companies nationwide have implemented the Productivity-Linked Wage System (PLWS) since it was introduced in 2015.

Deputy Human Resource Minister Datuk Mahfuz Omar said system had benefited 4.3 million employees during the period.

"The implementation of PLWS reflects the dynamism of the relationship between workers and employers where workers contribute to the production process by providing workforce input, namely skills, ideas or innovation in work processes to produce goods and services.

"The total added value generated by each employee is commonly referred to as employee productivity in which employees are rewarded in the form of wages, incentives or allowances paid by employers, thus reflecting their productivity," he said.

He said this to reporters after officiating the PLWS Tripartite Dialogue and the Recognition of Skilled Local Workers in the Installation of the Electric Train System (ETS) at China Railway Rolling Stock Corp (CRRC) (Malaysia) Sdn Bhd here today.

Meanwhile, Mahfuz in his opening speech said there was a need to expand efforts to strengthen legislative and enforcement capabilities, disseminating successful case studies and promoting the use of PLWS among government-linked companies including suppliers and vendors.

"I hope the cooperation between employers and workers will be further enhanced, especially in improving the implementation of PLWS which will benefit both parties in terms of increased profits and income and productivity of both parties.

"In addition, it can also realise the country's aspirations of achieving a high-income economy and the reliance on low-skilled foreign workers replaced with skilled local workers," he said.

According to Mahfuz, the recently issued 2018 Bank Negara annual report also emphasised the importance of closing the gap between wages and productivity.





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