FAQ on Wage Subsidy Programme

Key Takeaway

  • Documents required to apply for the Wage Subsidy Programme
  • Table of the enhanced Wage Subsidy Programme
  • Who is not eligible to apply

This Alert presents the Frequently Asked Questions (FAQ) about the enhanced Wage Subsidy Programme (WSP) which was announced on 6 April 2020 and replaces the previous programme announced on 27 March 2020.

Documents required to apply for the WSP

  1. Employee name list (according to enterprise size qualification and restrictions)
  2. Employer bank account information (the first page of bank statement)
  3. Details of the employer’s panel bank registration (pengenalan pendaftaran bank panel majikan)
  4. Copy of the employers’ Companies Commission of Malaysia (SSM)/ROS/ROB registration or business licence
  5. Other supporting documents such as financial statements or sales reports which have been certified by the management (required for employers having 76 employees and above)

Table of the enhanced WSP (6 April 2020)

Businesses in the tourism industry such as travel agencies, hoteliers and airlines will be given a deferment of their monthly tax instalment payments for six (6) months from 1 April 2020 to 30 September 2020.

 

This will affect instalment payments from 1 April 2020 to 30 September 2020 and the Inland Revenue Board (IRB) clarified in their media release dated 9 March 2020, that an application for the deferment has to be made via a manual form to the Tax Operations Department of the IRB.

a) Company size
Companies with up to 75 employees
Companies with 76-200 employees
Companies with more than 200 employees
b) Financial assistance
RM1,200 subsidy per month for each eligible employee

RM800 subsidy per month for each eligible employee

RM600 subsidy per month for each eligible employee
c) Limitations on the number of employees
75 employees

200 employees

200 employees

d) Period of assistance
3 months
3 months
3 months
e) Qualifying conditions
Rate of decrease in revenue or sales
No conditions specified
Reduction of 50% or more of total sales or revenue compared to January 2020 or the following months

Employer registration

1. Employers and employees must be registered or contributing to SOCSO
2. The employer is registered with the Companies Commission of Malaysia
3. (SSM) or Local Authorities before January 1 2020
4. Employers must have started operations before January 1 2020
Employee’s salary
Employees earning a monthly salary of RM4,000 and below
Other conditions
For employers who choose to receive this assistance, they are required to retain their employees for a period of at least 6 months, i.e. during the 3 months when the subsidy is in effect followed by the next 3 months.
f) Effective Date
1 April 2020
g) How to Apply

Employers must apply online through SOCSO’s official website prihatin.perkeso.gov.my

 starting from April 9 2020.

h) Application Deadline
September 15 2020 or subject to the availability of funds or any decision by the Government.
i) Payment Method
The wage subsidy payment will be credited to the employer’s account within 7-14 days from the date of approval.

Who is NOT eligible to apply for the WSP?

  • Employer or company which registered and started operations on or after January 1, 2020;
  • Employers and employees who have not registered or contributed to Social Security Organisation(SOCSO);
  • Employees who are receiving the Employment Retention Program (ERP) financial aid during the
    same month;
  • Employees with salaries of more than RM4,000 per month;
  • Employees who have been terminated;
  • Employees of the public sector, federal and state statutory bodies, Local Authorities and self- employed (without employers) including freelancers; and
  • Foreign workers and expatriates.