16 October 2020
Wage Subsidy Program
The Wage Subsidy Program was introduced by the government under the second stimulus package to prevent large-scale retrenchment by funding a portion of the employees’ wages and to ensure that businesses remain sustainable.
Available to all businesses regardless of nature or size, the government will contribute between RM600 and RM1,200 per month towards the salary of each local employee who earns a salary of RM4,000 or less, for up to a maximum of 200 employees.
Stringent conditions apply as businesses (other than those with less than 75 employees) must show a decline in revenue or income of more than 50% since 1 January 2020, and further, they are prohibited from reducing salaries, retrenching or imposing no-pay leave upon employees for 6 months, among others.