Workers’ compensation could reach 40% by 2025

by ANIS HAZIM / pic source: mpc.gov.my

MALAYSIA’S employee compensation (CE) is capable of contributing to the target of 40% by 2025 via its online system, e-Shared Prosperity Organisation (eSPO).

Malaysia Productivity Corp (MPC) DG Datuk Abdul Latif Abu Seman said it is important to have a high CE to improve the living standards of employees.

“MPC is redoubling our talent development efforts to boost productivity growth. The main focus is on providing a skilled workforce in the future, improving the educational attainment of Malaysians, and improving the CE,” Abdul Latif said in a statement yesterday.

As of last year, Malaysia’s CE reached 37.2% of the GDP.

Launched in December 2020, eSPO has certified organisations that implement the productivity-linked wage system (PLWS).

It is also recognised by the International Trade and Industry Ministry and the Human Resources Ministry.

“By the end of 2021, a total of 20,801 organisations have received eSPO certificates. More than 15,000 of these organisations are from the service sector,” he added.

According to Abdul Latif, eSPO could provide additional values to organisations that practice PLWS.

“It is a flexible wage system based on benefits and partnerships between employees and employers where the incentives provided are in line with job performance and increased productivity of employees and companies,” he said.

He also said employees will receive appropriate compensations, while the organisation can retain talent and provide motivation for employees to improve competencies, knowledge and skills.

Hence, organisations can apply for eSPO certificates through the MPC website at https://www.mpc.gov.my/espo/.