1. When WSP start effective and when is the last application?
- WSP start effective from 1 April 2020.
- WSP cover for 3 months effective from 1st April 2020 or from the month applied.
- The last day of application of WSP is 15 September 2020.
2. Important features of WSP:
TABLE 1
| Size of Company | Not more than 75 employees | 76 – 200 employees | More than 200 employees |
| Subsidy amount | RM1,200 per month of each employee | RM800 per month of each employee | RM600 per month of each employee |
| Maximum number of employees that can be claimed | 75 employees | 200 employees | 200 employees |
| Duration of subsidy | 3 months | 3 months | 3 months |
| Requirement | |||
| Percentage of decline in revenue | Not applicable | Decline of 50% or more in the revenue or income by comparing total revenue with January 2020 and following months | |
| Registration of Employer | 1. Employer and employee need to register or contribution with PERKESO before 1 April 2020.
2. Employer has registered with Suruhanjaya Syarikat Malaysia (SSM), Pihak Berkuasa Tempatan (PBT) or Pihak Berkuasa Perkhidmatan 3. The Company/Employer has commenced operation before 1 January 2020. |
||
| Employee’s salary per month | RM4,000 and below | ||
| Other condition | Employer must retain employees under WSP, no salaries cut, or give unpaid leaves for 6 months. | ||
| Effective date | From 1st April 2020 onwards | ||
| How to apply | Apply through https://prihatin.perkeso.gov.my/ from 9th April 2020. | ||
| Deadline | 15 September 2020 or subject to the remaining funds allocated or any decision by the government | ||
| Payment method | Payment of WSP will bank into the employer’s bank account within 7 – 14 days upon approval | ||
3. Who is NOT QUALIFIED for WSP
- Employer or company register or commence operation on or from 1 January 2020
- Employer or employee not yet register or contribute with PERKESO
- Employee who receive Employment Retention Program for the same month.
- Employee’s salary more than RM4,000
- Employee has been lay off
- Government servant
- Freelancer
- Foreign worker and expatriate
4. Document required for WSP?
- Name list of employee
- Bank account number (attach 1st page of bank statement)
- Business Registration Number (BRN). BRN is Company Number. Example: 1234560-X
- SSM Registration Cert such as Form 9 or Section 17 (CA 2016)
- Declaration PSU 50 Form; and
- *Supporting documents such as Statement of Profit and Loss and Revenue Report. These documents need to be verified by management.
*Applicable to the companies size more than 75 employees and above.
5. Does the employer need to make a claim monthly for the wage subsidy payment?
- No need. For the subsequent month, employer only need to update changes on the employee listing and business status (if any) before next month wage subsidy paid out. For normal, the wage subsidy will be automatically paid to the respective employer/company.
- WSP for the next month will be paid based on the updated listing.
6. Can the employer operating before 1st January 2020 but not registered with EIS apply for WSP?
- No, the employer must register or make any contribution with PERKESO before 1 April 2020;
- Must register with SSM or PBT or Pihak Berkuasa Tempatan, Pihak Berkuasa Perkhidmatan Professional, Saintifik or Teknikal before 1st January 2020
- Minimum 1 employee
7. Can employer which have applied for ERP, apply for WSP now?
- The employer must fulfill the terms and conditions for the Wage Subsidy as per Table 1.
8. Can the employer re-apply for the latest Wage Subsidy (announced on 6 April 2020) if the employer already applied for the Wage Subsidy which announced on 27 March 2020?
- Yes. For the employer who has applied the Wage Subsidy which announced on 27 March 2020 with more than 100 employees. The employer can make a new applications with NOT MORE THAN 200 employees and must fulfill the terms and conditions as per Table 1.
9. Can the employer apply Wage Subsidy and ERP for the same employee at the same time?
- No. The employer not allowed to apply the Wage Subsidy and ERP for the same employee at the same time. But, the employer allow to apply the Wage Subsidy and ERP for difference employee at the same time with terms and conditions as per Table 1.
10. How to determine the 50% sales decrease to qualify for the Wage Subsidy?
- Employer need to compare the total sales or revenue in January 2020 and the total sales or revenue in February 2020 or March 2020 was reduce to 50% and above. Then, the employer is qualified for the Wage Subsidy.
11. My company has various Departments/ Units/ Teams. Can the employer choose a part of the employees from these various units?
- Yes. The employer can choose any employees as long as they fulfill terms and conditions as per Table 1.
12. If the employer submit the application for Wage Subsidy in Jun 2020, will the wage subsidy be paid starting from April?
- No. There will be no back payments.
13. One of the criteria for the employer is that they must maintain the staff for 6 months. If the employee resign by themselves and the employer is receiving the Wage Subsidy, does the employer need to apply again to reflect the changes?
- If a staff resigns willingly within the 3 months of the subsidy period, the employer just need to update the employee information in the system. If the employer failure to do so, it will subject to a subject to legal action under the Law.
14. How does the employer know the Wage Subsidy application has been approved?
- Employers will receive Reference No once application submitted and can be used to check in the Portal.
- Approval status will be sent through email.
- The listing of employers that have been approved will be listed in PERKESO website https://eiscentre.perkeso.gov.my/ including the number of the staff approved.
15. What can the employee do should employer receiving WSP decided to not pay or cut salary or instructing the employee to take unpaid leaves or terminating employees’ employment?
- The employee can first check the approved employer under the WSP in https://eiscentre.perkeso.gov.my/
- The employee also may file a complaint to SOCSO by emailing to aduansip@perkeso.gov.my.
16. What is the definition of Wages or Salary of RM4,000 and below under the WSP?
- The definition follows the salary definition under the Akta Keselamatan Sosial Pekerja 1969 [Akta 4]. It includes overtime, commission, paid leave, incentivized allowances, service charges and etc.
“Salary Interpretation” under Subsection 2 (24) of the Employees’ Social Security Act 1969 of Employees is:
(24) “salary” means all remuneration payable by an employer to the employee including any payment in respect of leave, leave, overtime, and additional work on leave but excluding—
(a) any contribution payable by the principal employer or employer directly to any pension or savings fund, or under this Act;
(b) any travel allowance or the value of any travel concessions;
(c) any sum paid to an employee to pay for special expenses incurred as a result of his employment;
(d) any remuneration payable upon termination or retirement;
(e) annual bonuses;
(f) any other remuneration prescribed.
17. How should I pay my employee upon joining the WSP?
- Employers must pay their salaries as usual at the same rate and then submit their Wage Subsidy Program application to SOCSO. The subsidy received from SOCSO is financial assistance to the employer. SOCSO and EIS contribution payments are mandatory based on the employee’s actual salary.
18. If the same employee work for company A and B and both contribute to EIS, does both company qualify to apply for WSP?
- Yes, company A and B can apply Wage Subsidy for the same employee as long as fulfill the terms and conditions as per Table 1.
19. My company has Malaysian citizen and non-citizen employees but haven’t registered with PERKESO. Can I register with PERKESO and apply for the Wage Subsidy Program on behalf of employees of Malaysian citizens only?
- Employer must register or contribute with PERKESO before applying for the Wage Subsidy Program. This application is only eligible for Malaysian citizen. The employer must also declare the total number of employee Malaysian citizen and non-citizen**
**Note: The definition of Companies Size is based on the number of employee Malaysian citizen AND non-citizen.
20. Are employer and owner included in the determination of Companies size?
- No.
21. Is the Wage Subsidy Program payment paid to the employer based on the number of the PERKESO’s employer code or to the employer only?
- The Wage Subsidy Program is paid to employers based on registration with authorities such as SSM / ROS / ROB / professional services, scientific or technical services / business licenses and is not based on the number of employer codes for the branches of the company.
- Applications from a number of different employer codes but with the same SSM / ROS / ROB / professional, scientific or technical services / business license registration will be considered as an application.
- If there is more than one endorsement from two different employer codes but is registered with the same SSM / ROS / ROB / professional, scientific or technical services / business license, then the total number of eligible employees is based on the overall enterprise size of both the application.
- The eligibility limits for the Employment Subsidy Program is based on the registration with authorities such as SSM / ROS / ROB / professional, scientific or technical services / business licenses only.
22. What is the difference between EIS, ERP, and WSP:
| Program | Employment Insurance System (EIS) | Employment Retention Program (ERP) | Wages Subsidy (WSP) |
| Beneficiary | The employee who loses the job | The employee who has been asked for unpaid leave by the employer | Wages subsidy to the employer for staff retention |
| Effective date | 1 January 2018 | 1 March 2020 | 1 April 2020 |
| Applied by | Employee | Employer | Employer |
| Requirement |
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|
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| Assistance | Elaun Mencari Pekerjaan (EMP) and training fee | RM600 per staff for 1 – 6 months | RM600 – RM1,200 per staff or 3 months |
| Method of application | https://eis.perkeso.gov.my | https://www.perkeso.gov.my | http://prihatin.perkeso.gov.my/ |
For more information, please click: FAQ_PSU_Wage_Subsidy_-_18April2020
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Read more on:
Key Highlights related to PENJANA/ National Economic Recovery Plan
SOCSO’s Hotline for Wage Subsidy Programme and Employment Retention Programme
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