Training Course on Productivity-linked Wage Systems

PLWS link wages to productivity and performance. This ensures that wage increases are directly proportional to enhancements in productivity, allowing employees to receive a fair share of the gains resulting from improved performance and productivity growth. This approach has been applied in various sectors and has gained trust in enhancing productivity and equity across organizational and societal levels. For example, the Malaysian government applied PLWS to mitigate income disparities while increasing productivity, aiming to elevate the employees’ GDP compensation share from 37% in 2020 to 40% by 2025, along with profit–wage correlation and union involvement (PwC 2022).

However, designing and implementing an effective PLWS requires a thorough understanding of its principles, benefits, and potential challenges. This training course aims to bridge knowledge gaps and promote PLWS as a means to achieve sustainable productivity growth and employee welfare.

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