Covid-19 Government Prihatin Rakyat Economic Stimulus Package

Employment Retention Programme 
(announced on February 27, 2020)
Covid-19 Government Economic Stimulus Package
Employment Retention Programme 
(announced on February 27, 2020)

What is the programme about?

Employment Retention Programme (ERP) provides temporary financial assistance of RM600 per month for a maximum of 6 months to employees who have been served unpaid leave notices. The period of ERP coverage will start once the employers issued unpaid leaves (CTG) notice to employees from 1 March 2020 until a date to be set by SOCSO.

Who is eligible to apply?

  • All private sector employers who employ workers including part-time and registered employees

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

  • monthly salary is less than RM4,000

  • only for local employees



How to apply?

The employer has to submit a complete application through ERR Application Form C-19 and attach a mandatory document of the CTG Notice letter containing the list of employees involved. 

What information is needed to apply?

  • Employee’s full name 

  • Citizenship identification card number (KPPPN No)

  • Job title

  • Last salary information 

  • Email and telephone number to contact

Submission of the ERR C-19 Employment Retention Program can be made via email starting from 20 March 2020.

How will payment be made?

The approved will be credited directly into the employee’s account within seven days of application.​

Perkeso ERP vs EIS.jpg

Source: SOCSO

Programme Brief

Assistance: Monthly subsidy of RM600 per worker for 6 months​
Income Group: Employees earning less than RM4,000 a month 
Target Group: Employees served with no-pay leave notice



Ministry: Ministry of Human Resource 
Agency: Social Security Organisation (SOCSO)

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



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.



  • 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.

erp vs eis.jpg

Source: SOCSO


Location: Malaysia

If you have any positive ideas or comments to share or help us improve our work, we would love to hear from you.

01/ Government Programmes|

Cost of Living Reliefs

02/ Government Programmes|

Basic Essentials

03/ Government Programmes|

Safety Nets

  • Retirement & Savings

  • Employment

Follow the Journey of the New Malaysia

ANM in the News > 
Building A New Malaysia >

Malaysia in Transition​
ANM News Archive >

The New Propositions >

The New Government >

Things that Matter to all Malaysians

Living in the New Malaysia

Malaysian Government Assistance Programmes >

Quicklinks to get Government Help >

Fuel Prices >

The Malaysian Ringgit >

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


Ministry of Finance Prihatin Website >


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