PERKESO

The Wage Subsidy Program (WSP), Employee Retention Program (ERP) and Employment Insurance System (EIS) have been introduced to assist businesses deal with the COVID-19 outbreak.

Eligibility criteria of the Wage Subsidy Program (WSP)

During this tough economic climate, in particular during the MCO period, businesses are facing financial pressure as they are required to continue paying for fixed costs without generating any income. One of the significant costs incurred by businesses would be salaries and wages paid to their employees. In order to reduce costs and ease tight cash flows faced by businesses, some employees are dismissed or even forced to take unpaid leave during the MCO period.

As part of the Prihatin Economic Stimulus Package and Additional Prihatin SME Economic Stimulus Package, the government has introduced and enhanced the Wage Subsidy Program to assist businesses to retain existing employees during this tough economic period.

The eligibility criteria of the WSP are as follows:

As at 15 April 2020, the Social Security Organisation (PERKESO) has approved 111,900 applications involving 727,288 workers out from the total application of almost 130,000.

Please find below the relevant links for further details:

WSP overview -
Source 1: https://www.perkeso.gov.my/index.php/en/wage-subsidy-programme

FAQ (Malay Language only) -
Source 1: https://www.perkeso.gov.my/images/pengumuman/psu/FAQ_PSU_Wage_Subsidy_-_18April2020.pdf

The Star publication dated 17 April 2020 on the number of approved applications under WSP -
Source 1: https://www.thestar.com.my/news/nation/2020/04/17/almost-130k-applications-received-for-wage-subsidy-scheme-says-socso

Details and criteria of the Employment Retention Program(ERP) and Employment Insurance System(EIS)

On top of the WSP, Employment Retention Program (ERP) and Employment Insurance System (EIS) are also an immediate financial assistance provided for employees during this tough period.

The details and criteria of the ERP and EIS are summarised as follows:

Please find below the relevant links for further details:

ERP overview -
Source 1: https://www.perkeso.gov.my/index.php/en/kenyataan-media

FAQ (Malay Language only) -
Source 1: https://www.perkeso.gov.my/images/erp/LAMPIRAN_2_-_Soalan_Lazim_Program_Pengekalan_Pekerja__Employee_Retention_Program_ERP.pdf

EIS overview -
Source 1: https://www.perkeso.gov.my/index.php/en/benefits-of-eis/eligibility-and-conditions

Initiatives & Measures

Loans for SMEs

Several financing facilities have been introduced under the Economic Stimulus Packages to help businesses cope with the COVID-19 outbreak.

Inland Revenue Board

The IRB has announced various measures to assist taxpayers in coping with their tax obligations during the Movement Control Order period.

Employees Provident Fund (EPF)

Employers have been given an option to apply for deferment and restructuring of employer’s share of EPF contributions.

Human Resources Development Fund (HRDF)

Employers have been given a 6-month exemption from contributing to the Human Resources Development Fund.