Kuala Lumpur: The Dewan Negara was told today that 51,363 workers had benefited from the Progressive Wage Policy (DGP) as of Dec 31 last year.
Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan said that of the 5,910 employers who applied, 4,025, or 83.4 per cent, had implemented wage increases under the DGP incentive conditions.
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He said wholesale and retail trade, including motor vehicle and motorcycle repair, accounted for the largest share of DGP incentive claims at 26.7 per cent, followed by manufacturing (15.7 per cent), professional, scientific and technical activities (11.1 per cent) and education (7.4 per cent).
“In terms of effectiveness, the DGP has increased the median wage as of Dec 31, 2025, particularly for entry-level workers with 12 months’ service, with pay rising by RM300 from RM1,900 to RM2,200, a 16 per cent increase.
“For employees with over 12 months’ service, the median wage increased by about RM238.85 to RM2,999.15, or roughly 11 per cent, showing that the government’s approach not only encourages employers but also improves workers’ motivation and productivity,” he said.
He was responding to a question posed by Senator Datuk Abdul Halim Suleiman about the effectiveness of the DGP and private sector compliance during the Dewan Negara’s oral question-and-answer session.
Meanwhile, in response to a supplementary question from Senator Dr Wan Martina Wan Yusof, Khairul Firdaus acknowledged challenges in the two-year DGP rollout, including difficulties in implementing the 6 per cent minimum wage increase, low training compliance among small employers, and limited awareness of online training platforms.
He said the DGP, which began as a pilot project from June to August 2024 with an allocation of RM50 million before its full implementation, requires RM300 million and is expected to benefit over 50,000 workers by 2027, as outlined in Budget 2025.
