How You Can Apply for Wage Subsidy Programme 2.0 (WSP 2.0)
WSP 2.0 is the enhanced version of the package, which includes a budget of RM13.8bn. People can apply for this programme until December 2020.
In this article, you will get all of the important information about WSP 2.0 and how to apply for it.
What is WSP 2.0?
The purpose of the programme is to pay wage subsidies to employers for each employee earning RM4,000 and below for a period of three months.
Eligibility of WSP 2.0
All employers in Malaysia can apply for WSP 2.0, except:
- Companies that have registered on or after 1 January 2020.
- Employers who did not register with SOCSO before 1 April 2020.
- Companies that have already received the benefits of the Employment Retention Programme (ERP) financial aid.
- Employers that are applying on behalf of the employee who is being paid more than RM4,000 per month.
- Retired employees and foreign workers.
- Employees of the public sector, federal, and state statutory bodies.
Documents Required for WSP 2.0
Generally, when you apply for WSP 2.0, you must have the following documents:
- A complete list of the employee names.
- Bank account information of the employer. A copy of the bank statement cover is sufficient.
- The Business Registration Number (BRN) information is given by the employer at the time of opening a new bank account. If employers do not have this information, they can obtain it from their banks.
- Copy of the professional, scientific, or technical services license registration.
- PSU50 Declaration.
- Other supporting documents, like financial statements or sales reports, might also be needed depending upon the type and scale of your company.
Period of WSP 2.0
However, companies that have not received any kind of financial aid during this period will be able to apply for salary subsidies for a period of six months, which simply means they will be getting an extra three months to use this massive financial relief.
During this period, the government is expecting to help numerous types of businesses, especially small and medium enterprises, to overcome the consequences of the global pandemic.
By overcoming the cash flow constraints and fulfilling the requirement of the fixed capital cost, the companies will be able to function smoothly during these challenging times.
Applying for the WSP 2.0 in Different Months
When employers are applying for WSP 2.0 in different months, they do not have to submit a new application for the successive claims.
However, the companies or their partner audit firms in Malaysia must make sure that the information is up-to-date if there has been any major change in the business activity or the number of eligible employees.
Complete information of the employees must be provided, as the wage subsidy is distributed on the basis of the list of names and numbers of workers in a company.
Moreover, the application must be accurate. Otherwise, it can be rejected or even legally challenged, which can cause further issues for the companies.
If you are using professional accounting services in Malaysia, you will have no issue in producing the required documents and accurate financial information.
Status of the WSP Application
Moreover, employers will receive an email that informs them about the outcome of their application (acceptance or rejection).
The Bottom Line
WSP 2.0 is a highly useful financial aid programme. Companies, especially SMEs in Malaysia that are struggling due to the COVID-19 pandemic should definitely apply for this programme if they meet the above eligibility criteria.
It will help them in paying salaries to their employees and hence, keep operating their business in an efficient and productive manner. For more information, feel free to get in touch with us.