About PLWS

Productivity is one of the key factors affecting a country’s economic growth and the living standard of its people. Therefore, improvement in productivity is a strategic means to enhancing economic competitiveness. Realising the importance of improving organisational productivity and competitiveness, the government has introduced the Productivity-Linked Wage System (PLWS).

In line with the objective of the government to encourage the implementation of the PLWS by the industrial sector in Malaysia, the Department of Industrial Relations (IRD) under the Ministry of Human Resources has and will take steps to promote the PLWS.

The PLWS establishes a closer link between wages and productivity in order to enhance the country’s competitiveness. It will benefit employees and employers whether in the unionised or non-unionised sectors in this country.

To enable employers to create a broader and systematic approach towards improving productivity and wages through the active participation and co-operation of their employees;

To enable employees to obtain a fair share of gains that arise from productivity improvement thereby promoting equity, social unity and improving the quality of life besides developing career advancement opportunities and enhancing job satisfaction.