The Social Security Organisation (Socso) in Malaysia has started announcing the weekly status of applications submitted by employers under the Wage Subsidy Scheme via video recording. In a statement released yesterday, Socso said that employers must cooperate by submitting forms with complete details in order to expedite the approval process.
Since the application opened on 1st April 2020, Socso found that some employers have submitted incomplete applications and are not providing the exact information or their documents are in the wrong format. It said the majority of employers who applied for the programme were suffering from lower cash flow and drop in sales due to COVID-19.
As of the 10th April 2020, the employment insurance system (EIS) received 31,324 applications from employers, involving 299,858 employees. From the 31,324 applications, a total of 30,798 are companies with a workforce of below 75 employees; 448 are companies with between 76 and 200 workers, and 78 companies with more than 201 staff.
Prime Minister Tan Sri Muhyiddin Yassin announced several initiatives through the Prihatin Rakyat Economic Stimulus package to help those affected by the COVID-19 outbreak.
On the 28th March 2020, Human Resource Minister Datuk Seri M. Saravanan stated that employers are required to file claims for their employees to benefit from the Wage Subsidy Programme, provided under the People-Centric Economic Stimulus Package (PRIHATIN) 2020.
He also mentioned that employers are not allowed to lay off their workers, deduct their salaries or force them to take unpaid leave for three months after the programme is implemented.
It has now been announced that Malaysia’s Movement Control Order (MCO) will be extended by two more weeks. It will begin from 29 April 2020 after the third phase ends on 28 April 2020, and last till the 12th May 2020.
To learn more about Malaysia’s tax and business landscape, browse our Global Insight Guide.