Malaysian Prime Minister Muhyiddin Yassin announced that the government will extend the wage subsidy programme (WSP) by another three months and an additional RM5 billion has been allocated to the programme. The scheme which will allow eligible employers pay RM600 per month to each worker.
The announcement comes on the back of the Prime Ministers announcement on details of the Penjana economic regeneration. He said an estimated two million jobs have been saved by the initiative, preventing further job losses and loss of income for workers.
Employers that receive the wage subsidy will be allowed to implement a reduced work week and pay. This means they could reduce the number of work days in a week to four and reduce pay by 20%. In addition, businesses in the tourism sector and those prohibited from operating during the Conditional Movement Control Order (CMCO) are able to receive the wage subsidy for their employees on unpaid leave. Those employees are to receive the subsidy directly.
The programme, which is part of the government’s RM9 billion allocation for three million workers, is said to have been well received by employers and workers since it took effect on 1 April.
The WSP is a financial assistance programme that is set up to support Small-Medium enterprises to continue paying their wokers during the Covid-19 pandmic. The measure was meant to prevent workers from losing their jobs and maintain their source of income. Since then, an additional RM10 billion has been allocated to the programme.
Originally, wages subsidies were paid to employers for each eligible local employee earning RM4,000 and below.