Wage subsidy Programme – Updated 6th April (PRIHATIN SME+)



1. How to Qualify?

What are the eligibility requirements for Wage Subsidy?

  • Both employers and employees need to be registered and have contributed to the Employment Insurance Scheme (EIS).
  • Employers with declining revenue of more than 50% since January 2020 by comparing total sales in January 2020 and the following months.
  • Employers opting to accept this assistance are required not to dismiss employees, directing employees to take unpaid leave and pay deductions for a period of 6 months; That is 3 months during the period receiving the subsidies and 3 months thereafter. e.g. Employers receiving the wage subsidy from April to June cannot undertake any of the above mentioned initiatives until October.

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2. Rate and Period of Assistance

The period of assistance is for a maximum of three months. Under the enhanced initiative, all companies with local employees earning a monthly salary each of RM4,000 and below will receive wage subsidies as follows:

  • For companies with a workforce of more than 200 people, Government will provide a wage subsidy of RM600 per month for every retained worker. However, the maximum number of workers that a company is eligible to claim for will be increased from 100 to 200 employees.
  • For companies with employees between 75 to 200 people, Government will receive a wage subsidy of RM800 per month for every employee.
  • For companies with employees of less than 75 people, Government will provide a wage subsidy of RM1,200 per month per employee.
  • For employers opting to accept this assistance, they are required to retain their employees at least for a period of 6 months, that is 3 months during the period receiving the subsidies and 3 months thereafter.

3. How to apply?

All applications must be submitted by the employer only beginning April 1, 2020 at the web site prihatin.perkeso.gov.my


4. Payment method

Payment from Government is credited to the employer’s account based on the number of eligible employees within seven days of submission of application.


5. How long will the Wage Subsidy Programme last

The Wage Subsidy period is 3 months from the date of application and the latter is subject to the economic situation of the country decided by the National Economic Action Council.