Bridging the Gap in Knowledge and Policy
Welcome to the Progressive Wage Hub, a dynamic platform that serves as a pivotal link between workers, employers, academia, government, and the public. Our mission is to facilitate the convergence of ideas and insights, fostering informed discussions and collaborations that drive the advancement of fair and sustainable wage practices. With a commitment to promoting inclusive and equitable work environments, we strive to create a positive impact and drive positive change in the labor landscape. Follow us in shaping the future of work through informed dialogue and collaborative efforts toward a more just and prosperous society.

Policy Resources

Mitigating Wage-Productivity Paradox


The wage-productivity paradox refers to a situation where wages and productivity levels are not proportionally aligned. Our empirical assessment indicates that an increase in labor productivity translates to a low wage growth.

Resolving this paradox is a common goal for policymakers and labor advocates, as it involves ensuring that workers are fairly compensated for their increased productivity, ultimately contributing to a more equitable and sustainable economic system.

A progressive wage model is a balanced approach to address wage and productivity growth simultaneously. The progressive wage model does not contribute to inflation and job losses due to its gradual and targeted approach to raising wages for low-income workers. By linking wage increases to productivity improvements, businesses are incentivized to invest in efficiency and training, offsetting labor cost hikes.

Understanding an Ideal Wage Framework for Addressing Wage Gaps


The main purpose of this Policy Brief is to shed light on the ideal wage system for an economy, providing the public with valuable insights and exposure on this vital subject.

Developing comprehensive wage policies that encompass both floor and progression wage systems is important to ensure equitable wage growth for low-income and middle-income workers.

Floor wage provides a crucial safety net while the rewards individual performance, skill development, and productivity improvements, offering a clear path for career advancement and financial prosperity.

The Need for a New Wage Model for Sustainable Workforce and Business


This Policy Brief presents an overview of the three main limitations of the current wage system become the major stumbling blocks in pushing for a fair and reasonable wage in Malaysia.

First, there is a concern to address the wage stagnation among middle-wage earners, particularly semi-skilled workers. The implementation of a progressive wage model holds immense potential for uplifting the wages of semi-skilled workers

Second, there is a limited application of profit-sharing model for the variable wage components (e.g. allowances and performance-based incentives) in the total remuneration. The development of a guideline could better facilitate the adoption of a profit-sharing model in any company according to its capability.

Third, the current wage governance body is mandated to the minimum wage and thus it has limitations in addressing the issue of wages from a holistic perspective. Therefore, there is a need to have a governance body that monitors the overall wage ecosystem for a fair distribution of wealth and increases the productivity of overall workers.

Wage is a Key Antidote: Higher Wages Would Help, Not to Hurt the Economy


Increasing wages in a low-wage economy is vital for improving living standards, reducing income inequality, and stimulating overall economic growth. But a poorly structured wage policy may potentially result in unintended consequences, such as inflationary pressures, reduced business competitiveness, and potential job losses.

Currently, it is of utmost importance to prioritize wage enhancements for the middle-income group, especially semi-skilled workers, as their wage growth has lagged behind that of high-skilled and low-skilled workers.

Introducing a tailored progressive wage model for this specific group presents itself as a sustainable and impactful solution. By implementing such a model, we can foster fair wage growth, narrow income gaps, and cultivate long-term economic stability, ultimately paving the way towards a more prosperous and inclusive economy.

The Need for Escaping the Wage Curse


The common assumptions that increasing wages could lead to market distortion and reversely affect economic performance seem to be an “unspell curse” to the Malaysian economy. These assumptions are strongly held by the majority of employers as a result of the lack of evidence-based facts and scientific evaluation. This article provides exposure of the attainable benefits to employers, employees and the economy as a whole when wage rates are raised higher than the current level. This article also addresses the multidimensional wages by not only focusing on the average wages but also on minimum and living wages. At the end of this analysis, recommendations are provided on the approaches that can be used to increase wages without impacting economic competitiveness.