Q1. What are the criteria to receive Wage Subsidy?
a) Employers and Employees have to be registered and contributed Employment Insurance System (EIS);
b) Employers have to make declaration that the company suffered declining revenue more than 50%，by comparing with the total sales in January 2020 with the following months;
c) Employees with the wages of RM4,000-00 and below, subject to 100 pax;
d) Employers have to ensure they will not (i) dismiss the Employees, (ii) instruct the Employees to take unpaid leave; and (iii) deduct salary for 6 months (3 months while receiving Wage Subsidy + 3 months subsequently).
Q2. Who are NOT qualified to apply for Wage Subsidy?
a) Employers and Employees not registered or contributed to EIS;
b) Employees have received subsidy under Employment Retention Program (ERP);
c) Employees’ wages exceed RM4,000-00;
d) Employees under public sector, statutory bodies, and local authorities;
e) Those who work on their own (without Employers) including, freelancers; and
f) Foreign workers and expatriates.
Q3. How to apply Wage Subsidy?
Application to be submitted online from 1/4/2020 at prihatin.perkeso.gov.my, together with the list of Employees, Employers’ bank account information, registration of bank panel of Employers/ MyCoID, SSM/ROS/ROB of the Employers/ Declaration PSU50 and supporting documents as to the declining sales more than 50%
Q4. Are the Employers entitled to apply for ERP and ESP for one same Employee in the same month?
Q5. What is the definition of “Wages”?
Under Employment Insurances System Act 2017 (as per the photo below), Wages means all remunerations payable in money by an employer to an employee including any payment in respect of leave, holidays, overtime and extra work on holidays but does NOT include—
(a) any contributions payable by the employer to any pension fund, social security fund or provident fund;
(b) any traveling allowance or the value of any traveling concession;
(c) any sum paid to the employee to pay for special expenses incurred as a result of his employment;
(d) any gratuity payable on discharge or retirement;
(e) any annual bonus;
(f) any benefit under any other written law administered by the Organization; and
(g) any other remuneration as prescribed.
Q6. If the Employers and Employees have reached a consensus for taking annual leave/ unpaid leave or pay cut, are the Employers entitled to Wage Subsidy?