Covid-19 Government Prihatin Rakyat Economic Stimulus Package

Wage Subsidy Programme 
(announced on March 27, 2020 and improved on April 06, 2020)
Covid-19 Government Prihatin Rakyat Economic Stimulus Package
Wage Subsidy Programme 
(announced on March 27, 2020 and improved on April 06, 2020)

 

Updates

New Malaysia | Covid-19 Assistance Apr 082020 @ 12:00

Employers can apply for wage subsidy programme online starting April 9

Employers who want to apply for the wage subsidy scheme targeted at small and medium enterprises (SMEs) can send in their applications to the Social Security Organisation (Socso) starting Thursday (April 9).|Read more >|TheStar

Covid-19 Perkeso wage subsidy programme  >

List of employers approved will also be displayed on the Socso website eiscentre.perkeso.gov.my

What is the programme about?

The Wage Subsidy Programme will be implemented through the Social Security Organisation (Socso), an agency under the Human Resources Ministry.

This programme provides a wage subsidy to employers experiencing a fall in income of more than 50% since Jan 01, 2020.  Employers can claim RM600 per worker for a period of three months.

The subsidy is only applicable for workers with monthly salaries of RM4,000 and below, who have registered and are contributing to Employment Insurance Scheme (EIS).

The Wage Subsidy Programme will be effective from April 1 2020. It is an extension of the Employment Retention Programme (ERP) that was announced in the Economic Stimulus Package 2020 on March 16.

  • Employers can apply for wage subsidy programme online starting April 9.

  • List of employers approved will also be displayed on the Socso website eiscentre.perkeso.gov.my

Who is eligible to apply?

  • employers experiencing a fall in income of more than 50% since Jan 01, 2020.

  • employees earning monthly salaries of RM4,000 and below.

  • the employee must be registered and are contributing to Employment Insurance Scheme (EIS).

  • only for local employees

  • to retain workers for at least 6 months

  • employers must be registered with the Companies Commission of Malaysia (SSM) or local authorities before 1 January 2020

  • employers must be registered with the Social Security Organisation (SOCSO)

The government will increase the wage subsidy of monthly RM600 per worker in accordance with the size of the company.

  • RM600 for companies with up to 200 pax (previously limited to 100 pax)

  • RM800  for companies with 76 to 200 pax

  • RM1200 for companies with up to 75 pax

This assistance is for a 3-month period.

How to apply?

Employers can submit their applications via www.perkeso.gov.my.

How will payment be made?

The approved wage subsidy will be credited directly into the employer’s account within seven days of application.

The Wage Subsidy Programme will be implemented through the Social Security Organisation (Socso), an agency under the Human Resources Ministry.

Source: SOCSO

The Covid-19 Government Prihatin Rakyat Economic Stimulus Package
(announced on March 27, 2020)

 

Ministry of Finance Prihatin Website >

https://pre2020.treasury.gov.my/en/

Summary

Prime Minister Tan Sri Muhyiddin Yassin announced a RM250 billion People-Centric Economic Stimulus package (Prihatin) which will benefit all segments of the society.

  • RM128 billion for the people’s welfare

  • RM100 billion to support businesses, including Small and Medium Enterprises (SMEs)

  • RM20 billion has been announced in the earlier stimulus package

Programme Brief

Assistance: Monthly subsidy of up to M1,200 per worker for 3 months​
Income Group: Employees earning less than RM4,000 a month 
Target Group: Employees of companies experiencing a fall in income of more than 50% since Jan 01, 2020

  

Contacts

Ministry: Ministry of Human Resource 
Agency: Social Security Organisation (SOCSO)
Website: https://www.perkeso.gov.my/index.php/en/wage-subsidy-programme
Email: perkeso@perkeso.gov.my

Mailing address: Menara PERKESO, 281, Jalan Ampang, 50538 Kuala Lumpur
Telephone: 1-300-22-8000

 

Web-links

List of employers approved will also be displayed on the Socso website eiscentre.perkeso.gov.my

Covid-19 RM10bil Government Assistance & Aid for SMEs

announced on April 06, 2020

 

In addition to the RM250bil economic stimulus package announced on March 27, 2020, the government unveiled a new RM10bil stimulus package to aid SMEs' cashflow.

[Full text] PM's speech on Additional Prihatin SME Economic Stimulus Package|Read more >|NST

Wage subsidy programme

The government will increase the wage subsidy of monthly RM600 per worker in accordance with the size of the company.

  • RM600 for companies with up to 200 pax (previously limited to 100 pax)

  • RM800  for companies with 76 to 200 pax

  • RM1200 for companies with up to 75 pax

This assistance is for a 3-month period.

 

Conditions:

  • only for local employees

  • to retain workers for at least 6 months

  • employers must be registered with the Companies Commission of Malaysia (SSM) or local authorities before 1 January 2020

  • employers must be registered with the Social Security Organisation (SOCSO)

Prihatin Special SME Grant

A RM2.1bil Prihatin Special Grant for all SME companies that qualify.

  • a Special Grant of RM3,000 to each company, and is expected to benefit nearly 700,000 micro SMEs nationwide.

  • The SMEs must register with the Inland Revenue Board (IRB) to enjoy this facility.

  • The Government will obtain a list of eligible SMEs from the Local Authorities and Companies Commission of Malaysia (SSM).

Micro Credit Schemes

  • Abolish the 2% interest rate for the Micro Credit Scheme under Bank Simpanan Nasional.

  • The National Entrepreneur Group Economic Fund (Tekun Nasional) will also offer RM200 million in microloans with a maximum loan limit of RM10,000 per company at no interest. 

Negotiable Terms of Employment

  • The government has agreed to encourage negotiations between employers and employees on the terms of their employment, including the option to deduct salaries, and to allow unpaid leave during the MCO.

  • Employers and employees can refer to the Labour Department to obtain advise in regards to any problems arising from a resolution. Negotiations have to be based on employment laws of the country.

Discount on Foreign workers' permit

Levy on foreign workers will be reduced by 25% for all companies with work permits that will expire in the period of 1 April to 31 December 2020. This reduction is not applicable to the domestic help sector.

 

Tax deduction for private premise owners to reduce rental

  • The government has appealed to owners of private premises to reduce rental rates for to SMEs during the MCO and three months after it ends.

  • They will be given additional tax deductions equal to the amount of rent reduction from April to June. This is subject to the condition that they reduce the rental by at least 30% during that period.

Auto moratorium for statutory documents submission

  • The government has granted an automatic moratorium of 30 days to allow companies to submit statutory documents to the Companies Commission of Malaysia (SSM) from the last date of the MCO.

  • * The filing of the companies financial statements is also extended for three months from the last date of the MCO. The flexibility is given to companies with financial years ending Sept 30 until Dec 31. Companies will have to apply for this flexibility from SSM and no late charges will be charged.

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Programme FAQ

 

Q: What are the eligibility requirements for the wage subsidy?

  • Both employers and employees need to be registered and have contributed to the Employment Insurance Scheme (EIS).

  • Employers need to make a declaration that they have suffered a 50% decrease in revenue by comparing revenue for January 2020 with the following months.

  • Eligible for employees with monthly income of RM4,000 and below and is limited to 200 employees only per employer from any sector.

  • iv. Employers have to ensure they do not fire their employees, ask employees to take unpaid leave or slash the salaries of existing employees while the employers are receiving the wage subsidy for three months, and another three months following the period.

 

Q: What is the difference between the Employment Retention Programme (ERP) and wage subsidy programme?

  • ERP is a form of assistance of RM600 a month per employee given through their employers for a period of six months.

  • Wage subsidy is a subsidy on wages for RM600 per month to be paid by employers to their employees for a period of three months.

  • ERP is only bound to an unpaid leave notice agreed upon by an employee and his or her employer; while wage subsidy is an initiative to help employers continue with their companies’ operation and reduce the risk of employers taking actions such as slashing salaries, cutting down work days, deducting annual leave of employees or taking more drastic action such as firing employees.

Q: Who is NOT eligible for wage subsidy?

  • Employers and employees who did not register or contribute to the EIS from Socso.

  • An employee who is also receiving the ERP assistance in the same month.

  • Employees with salaries of more than RM4,000 a month.

  • Employees whose services were terminated.

  • Public sector employees; and employees of statutory bodies and local authorities (PBT).

  • Self-employed persons, including freelancers.

  • Foreign workers and traders.

Q: When can the application for wage subsidy be submitted?

Employers can submit their application from April 1 2020, at prihatin.perkeso.gov.my

 

Q: What are the documents needed for the wage subsidy application?

  • list of the employees (limited to 200 employees).

  • bank account details of the employers.

  • copy of the employers’ panel bank registration (pengenalan pendaftaran bank panel majikan)/MyCOID.

  • copy of the employers’ Companies Commission of Malaysia (SSM)/ROS/ROB registration.

  • declaration of announcement of PSU50

  • other supporting documents such as financial statements or sales reports that have been verified by the management.

Source: TheStar

erp vs eis.jpg

Source: SOCSO

Perkeso ERP vs EIS.jpg

Source: SOCSO

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