Based on the latest announcement by the Malaysian Government on 6 April 2020, there is a revision on the Wage Subsidy Programme (Program Subsidy Upah) given to Malaysian Companies.
Here is a summary of the Wage Subsidy Programme:
|Size||Micro & Small||Medium||Large|
|Number of Employees||< 75 employees||76 to 200 employees||> 200 employees|
|Subsidy available||RM1,200 monthly for each employee||RM800 monthly for each employee||RM600 monthly for each employee|
|Limitation on number of employees for subsidy||75||200||200|
|Subsidy Period||3 months||3 months||3 months|
|Reduction in sales||Not Applicable||Sales need to reduce by 50% or more between Jan-20 and following months||Sales need to reduce by 50% or more between Jan-20 and following months|
|Employer Registration||• Both employer and employees need to register with Perkeso and contribute to Perkeso before 1st April 2020
• Employer is registered with SSM or Local Authority before 1 Jan 2020
• Employer need to be in operation before 1 Jan 2020
|Eligible Employee Salary||Below RM4,000 per month|
|Other condition||Employer is not allowed to terminate, reduce salary or instruct employees to take unpaid leave within 6 months of the Wage Subsidy Programme effective date of 1st April 2020|
|Effective date||1 April 2020|
|Application date||9 Apr-2020 to 15 Sep-2020, employer can apply at www.prihatin.perkeso.gov.my|
|Subsidy Payment Mechanism||Will be credited to the employer bank account within 7-14 days from approval date|
FAQs in relation to Wage Subsidy Programme
- It is 3-month financial aid given to Employers for every Malaysian employee they employ with a salary under RM4,000. The purpose is to assist the employers who are impacted by the COVID-19 outbreak to operate as usual and to retain their workforce.
- The programme will be effective from 1 April 2020 and the last day for application will be on 15 September 2020. The programme will last for 3 months from the approval date.
- Employers or businesses register and operate after 1 January 2020
- Employers and employees have yet to register with or contribute to PERKESO
- Employees who are entitled to financial aid from Employment Retention Programme/ Program Pengekalan Pekerjaan in the same month
- Employees with salary more than RM4,000
- Employees who are no longer in employment
- Public servants, employees with federal and state statutory bodies, local authorities and self employed
- Foreign workers and expatriate
- Employer Bank Account Details (Extract of Bank Statement with Company Name, Bank and Bank Account number)
- Business Registration Number (the registered with bank when open the bank account)
- A copy of certificate of registration with SSM/Local Authority/Professional Body/Trade License
- Declaration Form PSU50 / Akuan Pengisytiharan PSU50
- List of employees (attached)
- Supporting documents to prove reduction in sales such as management accounts or sales report certified by management*
*For Medium and Large size companies only
- Business Registration Number (BRN) is the business registration number registered with the bank when opening a bank account.
- Employers need to provide the BRN for the purpose of Electronic Fund Transfer (EFT).
- PSU50 Declaration Form/Akuan Pengisytiharan PSU50 is a declaration made by the employers that they agree to the terms and conditions set up in the form for the purpose of applying to Wage Subsidy Programme (“WSP”) or Program Subsidi Upah.
- Wage Subsidy Programme (“WSP”) or Program Subsidi Upah is a financial aid given by Government through Economic Stimulus Packages/Pakej Rangsangan Ekonomi (PRIHATIN) to assist employers affected by COVID-19 outbreak to continue operation and retain their workforce. This programme is also to assist employees under the B40 group who usually have income less than RM4,000 a month.
- Employers do not have to submit new applications for the second and third month. However, employers are required to update any changes in the second or third month if there are any changes to the business or number of qualified employees through the system. Failure to do sure will have legal consequences.
- Yes. All employer have yet to register with PERKESO can apply for Wage Subsidy Programme (“WSP”) or Program Subsidi Upah so long they fulfil the following criteria:
- Already registered with SSM, Local Authorities, Professional Bodies before 1 January 2020
- Have at least one employee
- Registered with PERKESO
- Yes, employers who have fulfilled the conditions to apply for Wage Subsidy Programme (“WSP”) or Program Subsidi Upah can apply for WSP even if they have received ERP before. However, companies are not allowed to claim WSP for employees who have already received ERP for the same month.
- Yes. For employers who have submitted applications to the WSP announced on 27 March 2020 and have more than 100 employees, they are allowed to submit new applications to account for the remaining employees so long as the total employees do not exceed 200.
- The employers can provide supporting documents such as management accounts/sales reports that the sales had dropped by more than 50% from January 2020 as compared to the following months.
- Yes. Employers can select any local employees whose salaries are below RM4,000.
- The subsidy will only be provided from the month of application and no backdated payment allowed.
- Yes. However, all employers should take note that any termination should be done in accordance with the Employment Act 1955 and Industrial Relations Act 1967.
- No. If the employee leaves the company voluntarily within the first 3 months of the WSP, employers only have to update the information in the system. Failure to do so may lead to legal consequences.
- No. All applications must be submitted by the employers
- The employers will be informed on the application status through email. List of approved employers will be published at PERKESO website; eiscentre.perkeso.gov.my together with the number of approved employees.
- Wage or income will be defined in accordance with the Employees’ Social Security Act 1969. All monetary payments given to employees such as gross salary / overtime/ commission /payment in respect of leave / service charges.
The employers should pay their employees the salary as usual and at the same rate and submit their application for WSP. The financial aid from WSP is for the employers. Monthly PERKESO and EIS contributions are still mandatory based on the salary given to employees.
- Yes. Both companies can apply for WSP so long they meet the conditions.
Yes. Employers need to register or contribute with PERKESO first before applying for WSP. This application is only eligible for Malaysian employees. Employers are required to submit a declaration on the total number of employees (both Malaysian and foreign employees). Note: the size of the company is defined based on number of employees (both Malaysian and foreign employees)
IMPORTANT NOTICE: This is a summarized version and for final reference, please refer to the statement issued by PERKESO.
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