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Under Wage Subsidy Programme, employers cannot lay off workers

KUALA LUMPUR: The Human Resources Ministry, through the Social Security Organisation (Socso), will implement a Wage Subsidy Programme to safeguard the welfare of employers and employees.

In a statement today, its minister, Datuk Seri M Saravanan, said the newly-introduced programme, announced as part of the Prihatin Rakyat Economic Stimulus Package yesterday, will see RM600 channelled to each private sector employee with a salary of less than RM4,000, whose employers experienced a 50 per cent drop in income since Jan 1.

He said the employers must make claims on behalf of their employees for the programme, which will take effect on April 1.

“Employers that make claims under the programme are not allowed to lay off workers, deduct their salaries or instruct employees to take unpaid leave for three months after the programme has been implemented.”

Saravanan said RM5.9 billion has been allocated to the ministry via Socso to implement the programme, which will benefit some 3.3 million private sector workers.

Saravanan also clarified that the Wage Subsidy Programme is an improvement and expansion of the Employment Retention Programme, which was announced during the Economic Stimulus Package on March 16.

For queries, email perkeso@perkeso.gov.my or send a message to facebook.com/perkeso.official.

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