Wages Subsidy Program (Program Subsidi Upah)
Updated: Apr 6
(as of March 27,.2020, 5:15pm)
Our Prime Minister Tan Sri Muhyiddin Yassin today announced RM250 billion Prihatin Rakyat Economic Stimulus Package or PRIHATIN that will benefit people and all quarters affected by the Covid-19 crisis in the country. One of the main issue addressed by the PRIHATIN Package is employees wages.
The Government will introduce the Wages Subsidy Program (Program Subsidi Upah) to help employers retain workers to curb the unemployment rate. Through this program, the Government will provide a wage of RM600 per month for 3 months, which is at a total of RM1800 for an employee. The program is aimed at employees earning less than RM4,000 and employers experiencing a 50% decrease in income since January 1, 2020. This would mean that not all employers are benefited from this Program unless they are able to show a decrease in income.
Our Prime Minister has also advised employers to ensure that they do not dismiss employees or direct them to take unpaid leave for three months after the program is implemented. Also, employers are not allowed to deduct an employee's existing pay. This is also the situation during the Movement Control Order period which has been extended to April 14. (For more information about Employer's Obligations during Covid-19, please click here).