Malaysia SMEs Employer Can Now Apply for Wage Subsidy Program in Malaysia

Wage Subsidy ProgramUnder this wage subsidy program, eligible companies with local workers earning RM4,000 and below will receive wage subsidy assistance of between RM600 and RM1,200 depending on the number of employees for a period of 3 months. Employers can start to apply for the wage subsidy scheme with Social Security Organisation (SOCSO) starting from 9 April 2020.

Eligibility Criteria

Please refer to table below for the eligibility criteria:-

Size of company Employees of 75 or less Employees between 76 to 200 Employees more than 200
Financial assistance RM1,200 per month per employee RM800 per month per employee RM600 per month per employee
Limit of employees 75 employees 200 employees 200 employees
Period of assistance 3 months 3 months 3 months

Eligibility requirements

Decline in revenue and sales No requirement Decrease of 50% or more in revenue or sales compared to January 2020 or the following months. Decrease of 50% or more in revenue or sales compared to January 2020 or the following months.
Registration

 

i.        Registered with and contributing to Social Security Organisation (SOCSO) before 1 April 2020.

ii.       Registered with the Companies Commission of Malaysia (SSM) or local authorities before 1 January 2020.

iii.     Commenced operations before 1 January 2020.

Employees’ wages RM4,000 and below
Other requirements Employers who choose to receive this assistance are required to retain their employees, not allowed to deduct their salaries or direct them to take unpaid leave at least for a period of 6 months, which is 3 months during the period of receiving the subsidy and 3 months thereafter.
Effective date From 1 April 2020
Application method Application must be submitted by the employer through the website prihatin.perkeso.gov.my beginning April 9, 2020
Last date of application 15 September 2020 or subject to the remaining funds allocated or any decision from the government.
Method of payment The wage subsidy payment will be credited to the employer’s account within 7-14 days from the date of the approval.

Application can be made via prihatin.perkeso.gov.my together with the following supporting documents:-

  • List of employee in accordance to the limit of employee (prepared in Excel format only);
  • Employer’s bank statement (front page only);
  • Business Registration Number (BRN) registered during the opening of bank account;
  • Company or business registration document / business license;
  • Declaration form PSU50; and
  • Supporting document such as bank statement or sales reports certified by management or any other related documents (only required for employers with 76 employees and above)

Wage Subsidy Program

Please email us at info@3ecpa.com.my should you require assistance for the application on the above.