Govt Introduces New Wage Subsidy Programme

According to Prime Minister Tan Sri Muhyiddin Yassin, the government is launching a Targeted Wage Subsidy Programme to support employers and employees in particular sectors which are still hit economically by Covid-19.

The programme was intended to help 1.3 million employees and estimated to involve RM2.4 billion, he said when announcing the Prihatin Supplementary Initiative Package (Kita Prihatin) today. Applications will be open from 1st October until 31st December 2020.

This initiative will replace the previous Wage Subsidy Programme that was launched in April 2020 and will end on 30 September 2020. The previous Wage Subsidy Programme was launched under the Prihatin Rakyat Economic Stimulus Package.

Under Targeted Wage Subsidy Programme, wage subsidies will be provided to employers that are still affected, especially businesses that since the Recovery Movement Control Order (RMCO) still suffer lower revenues of at least 30% compared to last year.

Infographics by Bernama

The wage subsidy will be supplied for up to three months at a rate of RM600 per month for each employee, with a limit of 200 employees per company.

The prime minister said that based on feedback he received on the Wage Subsidy Programme, there were those who were not qualified to receive it as they did not meet the eligibility terms of being registered with the Social Security Organisation (SOCSO) before 1 April 2020.

“To assure this group is not left behind, the Targeted Wage Subsidy Programme will be open for companies registered with SOCSO before 1 September 2020. For new applicants who have not received the wage subsidy before, they will now be eligible to receive the wage subsidy for up to six months,” Muhyiddin said.

The prime minister said the Wage Subsidy Programme offered during the Movement Control Order period had granted assistance to employers without requiring small companies to show loss of revenue to be eligible.

“With the transition to the implementation of the RMCO, most companies are now able to operate and conduct business actively,” he added.

Wage Subsidy Programme 2.0

Eligibility: Company experienced lower revenues of at least 30% compared to last year

Subsidy length: 3 months

Maximum no. of employees in a company: 200 employees

Rate: RM600 per month for each employee

Application duration: 1 October 2020 until 31 December 2020

For more information, you can visit this website.

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Source: The Edge Markets