Programme 1: Introduction To Productivity-Linked Wage System (PLWS)

Government Initiative

The white paper on the Progressive Wage Policy was tabled in Parliament in November 2023 to ensure that workers receive higher wages in line with increased productivity. Economy Minister Rafizi Ramli, says the government’s aspiration to restructure the economy towards Malaysia as a high-income nation by introducing a wage policy that reduces income inequality as well as enhances worker productivity and business competitiveness.
https://www.thestar.com.my/news/nation/2023/12/14/towards-a-progressive-wage-policy
Rafizi stated that the Progressive Wage Policy features three main mechanisms – participation criteria, annual salary increases, and incentives based on rates and worker groups – complements existing policies such as the Minimum Wage Policy and the Productivity Linked-Wage System (PLWS).

Why Plws:

Gaps in the economic growth and standard of living among various nations can occur due to employee productivity. We need to consider that a country’s ability to improve quality of life over time relies on its ability to improve the output of employees. Furthermore, it is widely acknowledged that productivity and wages will increase when the nation becomes more competitive and developed. Therefore, employees must acquire substantial gains from increased employee productivity to achieve a standard of living through the increase in given wages.

The Malaysian government has recognized the importance of improving productivity to enhance economic growth and competitiveness. Implementing productivity-linked wage systems can be seen as a strategy to incentivize workers and businesses to increase their efficiency and output. Ministry of Finance strongly affirms Productivity-linked wage system to benefit employers, employees.

Therefore, PLWS is a flexible and competitive wage system that allocates wealth created based on employers and employee’s performance as well as productivity to enhance the firm’s shared prosperity and competitiveness.

Enterprises that embrace the PLWS experience improve teamwork and build a healthier workforce with a stronger sense of belonging to the firm among employees. Consequently, flexibility in the employees’ remuneration systems and workers’ positivity results in employee-employer engagements as well as harmonious industrial relations.

Overview

This 2-day program introduces participants to the concept of Productivity-Linked Wage System (PLWS) and its significance in enhancing organizational productivity and competitiveness. Participants will explore the fundamentals of productivity and quality, understand the journey of PLWS in Malaysia, and grasp the benefits of implementing PLWS.

Objective

• Understand the importance of productivity and quality in organizational success.
• Gain insight into the concept and implementation of PLWS.
• Enable employers to apply a structured approach to incentivizing productivity.
• Acquire skills to measure productivity levels within departments and organizations.
• Motivate employees to align their efforts with organizational goals.

Output

Participants will gain a foundational understanding of productivity principles and PLWS, equipped with the knowledge to begin exploring productivity enhancements within their organizations.

Course Outlines

DURATION

2 days

Delivery Methodology

• Theory and Conceptual Understanding on the core concepts
• Case Examples
• Interactive Workshops with:
  • Group Discussions: Facilitate group discussions to encourage participants to share their thoughts, concerns, and ideas about PLWS.
  • Scenario Analysis: Present hypothetical scenarios or role-playing exercises to help employees understand how PLWS works in practical situations.
  • Q&A Sessions: Allow participants to ask questions and seek clarification on any aspects of PLWS they find confusing or unclear.

 

For more information, please contact:

• • • Customer Hotline – +601175726090
      
    • Email Enquiry – info@axsel.com.my