Other announced initiatives include the following:-
- Exemption from Human Resources Development Fund levy payments for a period of 6 months, i.e. from April 2020 to September 2020 for 63 sub-sectors under the manufacturing, service and mining & quarrying sectors;
- Ability to defer, restructure, or reschedule Employee Provident Fund contributions by employers;
- Deferment of income tax payments;
- 25% discount on foreign work levy payments for foreign workers whose work permits expire between 1 April 2020 to 31 December 2020; and
- Various bank loan moratoriums for a period of 6 months.
- Am I allowed to receive more than one of the benefits above?
Yes, you can even apply for both the WSP and ERP together, provided the conditions for both programmes are met. However, you cannot receive assistance from both programs in respect of the same employee.
- How do I apply for the ERP?
The application is to be made by completing the ERPC-19 form which can be obtained
here and submitting the same to
erpc19@perkeso.gov.my.
- I am interested in the WSP and have more than 75 employees. How do I show a 50% downturn in business?
To show a downturn in business, you must show at least a 50% reduction in sales or revenue. To do this, you will need to furnish financial statements, bank statements, sales records and other relevant documents which evidence the reduction in business and which are certified by the management.
You will be eligible to apply for the WSP for the months in which your business suffers a 50% downturn in business, provided that you apply between 9 April and 15 September 2020. The period of assistance will be from 1 April 2020 to 31 December 2020.
- Am I allowed to choose which employees receive the WSP benefit if I have more than 200 employees or if I do not receive the WSP in respect of all eligible employees?
Yes, provided that the employee receiving the benefit is a local employee and earns below RM 4,000.
- I have employees who earn a basic salary of RM 4,000 but also receive fixed monthly allowances on top of that. Am I eligible to receive WSP subsidies in respect of these employees?
In considering how much wages an employee earns for the purposes of the WSP, the definition of “wages” in the Employees’ Social Security Act 1969 will apply. The applicable definition of wages is all remunerations payable in money by an employer to an employee including any payment in respect of leave, holidays, overtime and extra work on holidays but does not include the following:-
- any contributions payable by the employer to any pension fund, social security fund or provident fund;
- any traveling allowance or the value of any traveling concession;
- any sum paid to the employee to pay for special expenses incurred as a result of his employment;
- any gratuity payable on discharge or retirement;
- any annual bonus;
- any benefit under any other written law administered by the Organization; and
- any other remuneration as prescribed Therefore, if your employee contractually earns more than RM 4,000 after taking into account allowances (except travel allowances), you will not be eligible to receive the subsidy for that particular employee.
- How do I make an application for the WSP?
Employers can make the application online
here.
You will need the following supporting documents:-
- Where can I find out more about the WSP?
More information can be obtained
here.
- If my employees agree to take unpaid leave for the duration of the Movement Control Order (“MCO”), may I apply for the ERP on their behalf?
The ERP was announced before the MCO and is meant for businesses which have had to undertake cost cutting measures, such as placing their employees on unpaid leave, to keep the business afloat. If you have requested your employees to take unpaid leave for between 1 to 6 months, regardless of the MCO, then you may apply for the ERP.
- In summary, what is the difference between the Employment Insurance System (“EIS”), ERP and WSP?
The salient differences are set out in the table below:-
The information provided on this FAQ does not, and is not intended to, constitute legal advice.
The Skrine Employment Practice Group is monitoring the relevant developments and will from time to time issue updated FAQs.
Please contact the following if you have any queries :-
Siva Kumar Kanagasabai
Partner
skk@skrine.com
Selvamalar Alagaratnam
Partner
sa@skrine.com
Foo Siew Li
Partner
foo.siewli@skrine.com
Sara Lau Der Yin
Senior Associate
sara.lau@skrine.com
Tan Su Ning
Senior Associate
tan.su.ning@skrine.com
Chen Mei Quin
Associate
meiquin.chen@skrine.com
Corrinne Chin May Suet
Associate
corrinne.chin@skrine.com