Covid-19

PERKESO FAQs On Wage Subsidy Program Vol 2 | PRIHATIN Additional Measures

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The Social Security Organisation (PERKESO) has issued “Soalan-soalan Lazim (FAQ) PRIHATIN Tambahan Program Subsidi Upah Sistem Insuran Pekerjaan, PERKESO” on 7 April 2020, following the Prime Minister YAB Tan Sri Muhyiddin Yassin’s announcement on additional measures for the Prihatin Rakyat Economic Stimulus Package 2020 (PRIHATIN Tambahan) on 6 April 2020, with a focus to small and medium-sized enterprises (SMEs) in a bid to soften the impact of the COVID-19 Movement Control Order (MCO).

Please click here to download the FAQs.

The following is the English translation of the said FAQs:

1. What is the Wage Subsidy Programme?
  • Wage Subsidy is a financial aid which will be paid to employers for every local employee with a salary amounting to RM4000 and below for a period of three months only.
  • The purpose of this Wage Subsidy Programme is to help employers who are economically affected by this Covid-19 so that they can maintain their company operations and to avoid employees from losing their jobs and income.

2. When will this Wage Subsidy Programme be enforced and when will it end?
  • Wage Subsidy Programme will be enforced from 1st April 2020.
  • Wage Subsidy Programme covers three months starting from 1st April 2020 or following the month which application is filed.
  • Last day of application for this Wage Subsidy Programme is 15 September 2020.

3. What are the improvements on the Wage Subsidy Programme that was announced on 6 April 2020?
The Wage Subsidy Programme which was announced on 6 April 2020 will replace the Wage Subsidy Programme that was announced on 27 March 2020. The improvement on the Wage Subsidy Programme is as shown as per Schedule 1 below:
 
Size of Company 75 employees or less 76 - 200 employees More than 200 employees
Subsidy Amount RM1200 per employee RM800 per employee RM600 per employee
Maximum Number of Employees 75 employees 200 employees 200 employees
Duration of Subsidy 3 months 3 months 3 months
Eligibility Requirements:

Percentage of Decline in Revenue or Sales		 Not applicable Decline of 50% or more of total sales or revenue compared to January 2020 or the following months. Decline of 50% or more of total sales or revenue compared to January 2020 or the following months.


Registration of Employer		 Employers and employees have to be registered with or contributing to PERKESO.
Employers have registered with Companies Commission of Malaysia (SSM) or Local Authorities before 1 January 2020.
Employer has started operations before 1 January 2020.
Employee Salary Employee’s salary has to be RM4000 and below
Other Requirements For employers who opt to apply for the Wage Subsidy Programme, they are required to retain their employees for at least 6 months, which is 3 months upon receiving the subsidy and the following 3 months after.
f) Effective Date Starting from 1 April 2020
g) Application Method Application has to be submitted by the employer through prihatin.perkeso.gov.my starting 9 April 2020.
h) Application Deadline 15 September 2020 or subject to remaining funds allocated or any decision made by the Government.
i) Payment Method Wage Subsidy Payment will be credited into the employer's account within 7 - 14 days period from the  approval date.
Schedule 1: Wage Subsidy Programme Improvement (6 April 2020)

4. Who is not qualified to apply for this Wage Subsidy Programme?
  • Employer or company which has registered and started operations on or after 1 January 2020;
  • Employer and employee which has yet to register under or contribute to PERKESO;
  • Employee which has received the Employment Retention Programme (ERP) aid in the same month;
  • Employee which has a salary of more than RM4000;
  • Employee which has been laid off;
  • Government Servant, Federal and State Statutory Bodies, Statutory Bodies with separate remuneration pensioners, Local Authorities and those who are self-employed (does not have an employer) including freelancers; and
  • Foreign workers and expatriates.

5. What are the required documents for the Wage Subsidy Programme application?
The documents required for the Wage Subsidy Programme are as follows:
  • List of names of employees (according to the size limit of eligible businesses);
  • Employer’s bank account information (front page of bank statement only);
  • Business Registration Number (BRN) information that is registered by the employer when opening the bank account as stated above. Kindly refer to your bank;
  • A copy of SSM / ROS / ROB / professional, scientific or technical authority bodies / business license;
  • PSU50 Declaration Acknowledgement; and
  • **Supporting documents such as financial statements or sales reports which have been certified by the management or other relevant documents.
**Note: Supporting documents for businesses with 76 employees and above

6. What is meant by Business Registration Number (BRN) information that needs to be obtained from the bank?
  • Business Registration Number (BRN) information is the business registration number that is registered by employers during the opening of the company’s current account at the bank.
  • Employers are required to fill the BRN Form which can be downloaded from the website prihatin.perkeso.gov.my and to upload the BRN FORM to the said website after it has been completed.
  • Bank Account’s Information and company’s BRN as above are needed for the purpose of direct payment into the employer’s account by Electronic Fund Transfer (EFT).

7. What is PSU50 Declaration Acknowledgement?
PSU50 Declaration Acknowledgement is a confirmation document and undertaking in writing that the employer confirms or declares the information within are true and correct for the purpose of the Wage Subsidy Programme application.

8. Why are employees whose income are above RM4,000 not covered under the Wage Subsidy Programme eventhough they contribute to SOCSO monthly?
The Wage Subsidy Programme is an allocation from the Government that is channelled through the Stimulus Economy Package (PRIHATIN) to assist employers that are affected by COVID-19 to continue their operations and to retain their employees. This programme is also to assist employees in the B40 group whose income is RM4,000 and below.

9. Are employers required to to make a new application in order to make new claims under the Wage Subsidy Programme for the following month?
Employers are not required to make new applications under the Wage Subsidy Programme for the second and third claims. However, employers are required to update any change of information for the second and third claims if there are any changes to the status of the business or the number of eligible employees through the system. Failure of the employers to report such changes may be subjected to legal action. 
 
10. Can employers that has been in operation before 1 January 2020 but have not registered with SOCSO apply for the Wage Subsidy Programme?
Yes, they can. Any employers that wish to make an application under the Wage Subsidy Programme but have yet to register with SOCSO, must fulfil the following requirements:
  • Registered with SSM, Local Authorities or professional, scientific or technical authority bodies before 1 January 2020
  • Has at least one employee
  • Register with SOCSO

11. Can employers that have received ERP make an application for the Wage Subsidy Programme?
  • Yes, they can. Employers that fulfill the requirements for the Wage Subsidy Programme application as provided in Schedule 1 (Question 3) can make an application eventhough they have previously received the ERP.
  • However, companies cannot make a claim for the Wage Subsidy Programme for employees that have received ERP within the same month.
 
12. Can employers re-apply for the latest Wage Subsidy Programme (6 April 2020) if the employers have applied for the Wage Subsidy Programme that was announced before this (27 March 2020)?
Yes, they can. For employers that have made the application under the Wage Subsidy Programme in line with the announcement on 27 March 2020 AND has employees of more than 100 people, employers may now make a new application for the remaining employees with a limit not exceeding 200 people. Application requirements are as provided in Schedule 1 (Question 3).

13. How do businesses with 76 or more employees prove a 50% or more drop in their revenue or sales?
Employers can prove the 50% or more drop in revenue or sales by furnishing supporting docuemnts which indicate the total sales or revenue in January 2020 compared to subsequent months.

14. My company has various departments / divisions / branches / units. Can I choose for only some of the employees of the department / division / branch / unit to apply for the Wage Subsidy Programme?
Yes. Employers may choose any of the local employees who earn RM4,000 and below to apply for the Wage Subsidy.

15. If employers submit applications for the Wage Subsidy Programme in June, will the wage subsidies be paid from April (backdated) or from June?
Wage subsidies will be paid from the date of application and there is no monthly payment for previous months (backdated).

16. If I do not submit applications for the Wage Subsidy Programme, can I lay-off my employees at any time?
Yes, you can. However, any employer who wishes to lay-off employees will be subjected to the rules and law of Employment in Malaysia, such as the Employment Act 1955 and the Industrial Relations Act 1967.

17. One of the eligibility requirements to apply for the Wage Subsidy Programme is that an employer must maintain the employees for 6 months. If there is an employee who resigns voluntarily and has previously received the wage subsidy, should the employer submit a new application?
No. Should a voluntary resignation occur within the first 3 months of the Wage Subsidy Programme, employers only have to update the information in the employees’ system according to their qualifications. The failure of employers in reporting such charges would give rise to legal action.

18. Do employees have the right to apply for the Wage Subsidy Programme on their own and for themselves?
No. All applications for the Wage Subsidy Programme must be made by the employers.

19. How will the employer be able to find out if their application for wage subsidy has been approved or rejected?
  • Employers will be notified on their application status through email, if the application has been accepted or rejected.
  • The list of employers that have had their application approved under the Wage Subsidy Programme will be listed on the SOCSO website https://eiscentre.perkeso.gov.my/ including the number of employees that have been approved.

20. What is the definition of wages or salary of RM4,000 and below interpreted under the Wage Subsidy Programme?
The interpretation of wages or salary is based on the interpretation in the Employees’ Social Security Act 1969 [Act 4]. All monetary payments to employees are considered salary, for example, base pay / overtime / commission / annual leave payments / sick / maternity / rest / public holidays etc. / incentive allowance / good behaviour / living expenses etc. / service charge.

21. How can I pay wages to my employee, if enrolled under the Wage Subsidy Programme?
Employers must pay employee wages under the same rate and submit the Wage Subsidy Programme application to SOCSO. The wage subsidy payment received from SOCSO will be financial assistance for employers. It is compulsory to continue SOCSO and EIS contribution fees based on the employee’s real wage.

22. If an employee works with Company A and Company B and contributes to SOCSO, are both companies eligible to apply for the Wage Subsidy Programme?
Yes. Both companies are eligible to apply for the Wage Subsidy Programme for the same employee provided the eligibility requirements in Schedule 1 (Question 3) are abided.

23. My company has workers of Malaysian citizenship as well as non-citizen workers but have not registered with SOCSO. Can I register with SOCSO and apply for the Wage Subsidy Programme for the Malaysian employees only?
Yes. Employers need to register or contribute to SOCSO beforehand, before submitting an application for the Wage Subsidy Programme. This application is eligible for workers with Malaysian citizenship only. Employers are also required to declare the total number of Malaysian citizen workers and non-citizen workers**.
**Note: Definition of company size is based on the total number of workers with Malaysian citizenship AND non-citizens.

24. What is the difference between EIS, ERP and Wage Subsidy Programme?
  Employment Insurance System (EIS) Employer Retention Programme (ERP) Wage Subsidy Programme
Legislation Source Employment Insurance System Act 2017 [Act 800] Economic Stimulus Package 2020 on 16 March PRIHATIN on 27 March 2020

Additional PRIHATIN on 6 April 2020
Beneficiary Workers that have lost their job Workers that have been given unpaid leave by their employers Wage subsidy for employers for the purpose of retaining their workers
Date of enforcement 1 January 2018 1 March 2020 (Applications start on 20 March 2020) 1 April 2020
Application Submitted by workers that were dismissed Submitted by employers Submitted by employers
Conditions Confirmed to have lost their job

Fulfilled eligibility requirements for EIS contributions

Ready to work and actively seeking for jobs		 Workers earning RM4,000 and below

Minimum period of unpaid leave is at least 30 days		 Workers earning RM4,000 and below

Employers are required to retain their workers for a period of at least 6 months

Other conditions are as in Schedule 1 (Question 3)
Benefit /
Assistance		 Job Seekers’ Allowance (80% to 30% of wages for a period of 3-6 months)

Fee and practice allowance and others		 RM600 per month for an individual worker for a period of 1 to 6 months RM600 or RM800 or RM1,200 per month for an individual worker for a period of 3 months depending on the total workers of the company
Application Method https://eis.perkeso.gov.my https://www.perkeso.gov.my http://prihatin.perkeso.gov.my/

For further enquiries, please contact PERKESO Customer Service Officer at 03-4264 5555/ 03-8091 5100/ 1-300-22-8000 or email to [email protected]



PERTUBUHAN KESELAMATAN SOSIAL (PERKESO)
Updated on 7 APRIL 2020
 

For more insight into this area of law, please contact our Partners in the Employment & Industrial Relations Practice Group:
P Jayasingam
Wong Keat Ching 
Thavaselvi Pararajasingam