Updated: Apr 4
To know why the government is providing financial assistance while the employers are not allowed to place employees on unpaid leave during the Movement Control Order period, click here.
If your business has to reduce operation costs by putting employees on unpaid leave due to the impact of the Covid-19 outbreak, your employees may be eligible to receive the benefits provided under the Employment Retention Programme.
What are the benefits of the Employment Retention Programme (ERP)?
The ERP offers immediate financial assistance of RM600 per month, up to a period of 6 months, to eligible employees under unpaid leave beginning March 1, 2020 due to the spread of Covid-19.,
Who is eligible under the Employment Retention Programme (ERP)?
(i) all private-sector employees including temporary employees who have registered and are contributing to Employment Insurance System (EIS);
(ii) employees with a monthly salary of RM4,000 and below; and
(iii) employers have implemented no-pay leave for a period of 1 to 6 months with No-Pay Leave notice issued beginning 1st March 2020.
Who is not eligible to apply for ERP?
• Unregistered and non-contributing employees with EIS;
• Monthly wage earners over RM4,000;
• Retired workers;
• Public sector workers;
• Self-employed (with no employer) included freelancers; and
• Foreign workers and traders
How to apply for financial assistance under ERP?
Application has to be done only by the employer (and not the employee) for its eligible employees by completing the form (click here to download) and e-mail the form to firstname.lastname@example.org, together with the Notice of Unpaid Leave that contained the named of the affected employees.
How an employee receive the monthly payment of RM600?
The monthly payment of RM600 is paid by SOCSO employer and the employer must credit the payment received into each employee's account within 7 days from the date of payment received.