*This Wage Subsidy Programme has ENDED*
What is Wage Subsidy Programme?
The wage subsidy is a financial assistance paid to employers of every enterprise, for each worker earning RM4,000 and below and for a period of six months only.
The purpose of the wage subsidy programme is to help employers affected economically by Covid-19 to continue operations and avoid the loss of jobs and income streams for all enterprises.
Implementation of Wage Subsidy Programme
The Wage Subsidy Programme is effective from 1 April 2020. Employers are required to meet the following conditions:
a) 50% or more decline in revenue / income since Jan 2020 (Employees > 75 ppl)
b) Only for employees earning RM4,000 and below (Contributing SOCSO/EIS)
c) Registered with CCM or PBT and operated before 1 January 2020
d) Registered with or contributing to SOCSO and EIS before 1 April 2020
e) No pay-cut, retrenchment or unpaid leave (instructed by employer) for a period of 6 months
EE = employees
Mths= months
| a) Size of Company | Not more than 75 employees (EE) | 76 – 200 EE | 201 EE and above |
| b) Subsidy amount | First 3 months: RM1,200 per EE per month
Subsequent 3 months: RM600 per EE per month |
First 3 months: RM800 per EE per month
Subsequent 3 months: RM600 per EE per month |
First 3 months: RM600 per EE per month
Subsequent 3 months: RM600 per EE per month |
| c) Number of eligible
employees |
Max 75 EE | Max 200 EE | Max 200 EE |
| d) Duration of subsidy | 3 Mths + 3 Mths | 3 Mths + 3 Mths | 3 Mths + 3 Mths |
| e) Eligibility conditions | |||
| Percentage of decline of revenue | Not applicable | 50% or more decline in revenue or income by compared to January 2020 or the subsequent months | |
| Employer Registration | 1. Registered with or contributing to Socso or Employment Insurance System (EIS), before 1 April 2020
2. Registered with Companies Commission of Malaysia (SSM) or relevant local authorities (PBT) before 1 January 2020 3. Operational before 1 January 2020 |
||
| Employee’s salary per month | Employees earning RM4,000 and below | ||
| Other conditions | Employer must retain employees under WSP, no pay cut, retrenchment or unpaid leave for a period of 6 months | ||
| f) Effective date | 01 April 2020 | ||
| g) How to apply | Apply through
9 April 2020 |
||
| h) Deadline | 30 September 2020 or subject to fund availability and government decision | ||
| i) Payment method | Payment of WPS will bank into employer’s bank account within 7-14 days upon approval of applications | ||
(Table 1)
Employment Retention Program (ERP)
Starting from 15th Jun 2020, Employment Retention Program (ERP) has been combined under WSP. Hence, WSP is applicable for employees who are under tourism and prohibited economy activity during RMCO.
In addition, the subsidies received in this condition will need to transfer directly to employees. Employers will need to authenticate their business industries during application as well.
B)How to apply Wages Subsidy Program (WSP)
To apply WSP, please visit the website http://prihatin.perkeso.gov.my/.
1) Please click “Permohonan Bulan Pertama”
2) Check through the eligibility conditions
• Employees’ salary RM4,000 and below
• Employer who faced sales drop at least 50% from 1st January 2020
• Employer do not allow to lay off the employee and request employee to take unpaid leave for 6 months from the date of application
• Employer is not allowed to cut employee’s salary.
3) Fill up information
• Business Registration number
• Bank name and bank account number
• Employer Name
• Employer number (Socso Number)
• Business industry and business activity
• Business address (Included postal code and state)
• Telephone number
• Fax number
• Email address
• Total number of company staff included foreign worker
• Reason of income reduced
• Total number of staff who salary more than RM4,000 (Including foreign worker)
• Total number of staff entitle subsidy (Maximum 200 employee that salary is RM4,000 and below only)
• Total number of foreign worker
4) Please download the form from the left, fill up and upload to the webpage.
i) PSU50 declaration form *
ii) Employee listing *
iii) Registration of business (SSM)
iv) MyCOID / Panel Bank Id (Please confirm with your bank)*
v) Bank Statement (first page)
vi) Statement of profit and loss
*These documents can be download from the website, kindly fill up and upload to the website.
5) Double check the information filled in and ensure it is correct.
6) Re-check the document uploaded, read through the declaration, tick and submit the application.
7) After the submission, please note down the reference number.
How to check application status
8) To check the application status, please key in the reference number in the column and submit.
9) Check the application status.
10) For more information, please contact PERKESO.
C) FAQ for Wages Subsidy Program (WSP)
The wage subsidy is a financial assistance paid to employers of every enterprise, for each worker earning RM4,000 and below and for a period of three months only.
The purpose of the wage subsidy programme is to help employers affected economically by Covid-19 to continue operations and avoid the loss of jobs and income streams for all enterprises.
- WSP start effective from 1 April 2020.
- WSP cover for 6 months effective from 1st April 2020 or from the month applied.
- Last day of application of WSP is 30 September 2020
No need. WSP only need to apply once.
- Employer or company register or commence operation on or from 1 January 2020
- Employers or employees who have not registered with or contributing to PERKESO before 1 April 2020
- Employee’s earning more than RM4,000
- Employee has been lay off
- Civil servants or employees of statutory bodies and local authorities
- Self-employed (with no employer) including freelancers
- Foreign workers and expatriates
- Name list of employees
- Employer’s bank account information (front cover of bank statement only)
- The Business Registration Number (BRN) details used when opening the bank account
- SSM registration certificate such as Form 9 (CA 1965) or Section 17 (CA 2016)
- Declaration PSU50 Form
- Supporting documents such as management account and sales report. These documents need to be verified by management**
**Applicable to the companies size more than 75 employees and above
- It is SSM registration number of the company when open the bank account in bank
- The BRN Form can be downloaded from prihatin.perkeso.gov.my
- It is to assist the employer in providing the relevant banking details to enable direct payment to the employer’s account through Electronic Fund Transfer (EFT)
It is a declaration by the employer to confirm that the information provided to PERKESO is true and accurate. The PSU50 can be downloaded from prihatin.perkeso.gov.my
The WSP is to help employers affected economically by Covid-19 to continue operations and retain their employees. This program is also aimed to help the B40 employees.
No need. The employer only needs to submit the application for the first month. However, the employer has the responsibility to notify PERKESO if there are any changes on the employees listing and business status. It will be liable to legal action if employers failed to do so.
Yes. Employers who wish to apply for the WSP but have not registered with PERKESO have to fulfil the following conditions:
- Registered with SSM or PBT before 1 January 2020
- Minimum 1 employee
- Registered with PERKESO before 1 April 2020
The employer who fulfill the eligibility conditions for Wages Subsidy as shown in “Table 1” although they have received ERP before. However, the company cannot claim WSP for employees who have received ERP in the same month.
Yes. The employer who already applied for the Wage Subsidy which announced on 27 March 2020 and has more than 100 employees, can make a new application with NOT MORE THAN 200 employees and must fulfill the eligibility as shown in “Table 1”.
The Employer need to compare total revenue in Jan’20 and total revenue in Feb’20 or Mar’20 was decline to 50% or more. The employer must make a statutory declaration in PSU50 form to declare that the employer has suffered loss of revenue, including supporting documents such as financial statements or sales report which have been certified by the management.
Can. The employers can choose any of their local employee who earns RM4,000 and below to apply Wage Subsidy.
No. The Wage Subsidy will be paid from the month of application submitted and there will be no backdated payment.
Yes, provided the employer complies with the required labour law principles for retrenchment.
No. If the employee is resigned voluntarily within the first 3 months of the subsidy period, the employer will only need to update the employee information in the system. If employer failure to do so, it will subject to legal action.
No. All application must be submitted by employer.
Employer will be informed through email. The listing of employers that has been approved will be listed in PERKESO website https://eiscentre.perkeso.gov.my/ including the number of the staff approved.
The interpretation of wages or salary or income is in accordance with the interpretation of wages under the Akta Keselamatan Social Pekerja 1969 [Akta 4].
It includes all monetary payments to employee such as basic salary, overtime payment, commission, payment for unutilized annual or medical leave, allowance, incentive, arrears of wages, wages for maternity leave, wages for study leave, wages for half day leave, service charges, gratuity and other payments under service contract.
The employer shall pay their employee’s salary as usual with the same rate and then apply for WSP to SOCSO. The subsidy wages received from SOCSO is a subsidized wage to the employer. SOCSO and EIS contribution payments are mandatory based on the employee’s actual salary.
Yes. Both companies are eligible to apply for WSP for the same employee if the employer fulfill the eligibility conditions as shown in “Table 1”.
Employers must first register or contribute to the EIS and SOCSO before applying for the WSP. This application is entitled to Malaysian citizens only. Employer must also declare the total number of Malaysian and foreign employees**
** Note: The definition of Companies size is based on the number of Malaysian and foreign employees.
(201706002678 & AF 002133)