The purpose of this study is to review the current wage system and propose a new wage model that can be applied to increase labor compensation while
promoting productivity and economic growth. Promoting equitable labor compensation and forming a model to mandate profit-sharing have been stated in the 12th Malaysian Plan to ensure that workers obtain a fair wage and could improve their standard of living.

There are three potential interventions to overcome the limitations of the current wage system which are (i) adopting Singapore’s Progressive Wage Model (PWM),(ii) developing guideline for better adoption of profit-sharing model and (iii) established a holistic governance body to monitor the whole structure of the wage ecosystem from pre-employment to post-employment.