KUALA LUMPUR – The government is introducing a Targeted Wage Subsidy Programme to assist employers and employees in certain sectors which are still affected economically by COVID-19, said Prime Minister Tan Sri Muhyiddin Yassin.
To be open for applications from Oct 1 to Dec 31 this year, the programme was expected to benefit 1.3 million workers and estimated to involve RM2.4 billion, he said when announcing the PRIHATIN Supplementary Initiative Package (Kita Prihatin) today.
This initiative follows the Wage Subsidy Programme launched earlier under the Prihatin Rakyat Economic Stimulus Package which is set to end on Sept 30.
For the Targeted Wage Subsidy Programme, wage subsidies will be given to employers that are still affected, namely companies that since the Recovery Movement Control Order (RMCO) still face lower revenues of at least 30 per cent compared to last year.
The wage subsidy will be given for up to three months at a rate of RM600 per month for each employee, with a maximum of 200 employees per company.
Muhyiddin said based on feedback he received on the Wage Subsidy Programme, there were those who were not eligible to receive it as they did not meet the eligibility requirements of being registered with the Social Security Organisation (SOCSO) prior to April 1, 2020.
“To ensure this group is not left behind, the Targeted Wage Subsidy Programme will be open for companies registered with SOCSO prior to Sept 1, 2020.
“For new applicants who have not received the wage subsidy prior to this, they will now be eligible to receive the wage subsidy for up to six months,” Muhyiddin said.
The prime minister said the Wage Subsidy Programme introduced during the Movement Control Order period had provided assistance to employers without requiring small companies to show loss of revenue to be eligible.
“With the transition to the implementation of the RMCO, most companies are now able to operate and conduct business actively,” he added.