Wage subsidy expanded, up to RM1,200

CORONAVIRUS | Putrajaya's three-month wage subsidy scheme has been expanded to RM13.8 billion, up from RM5.9 billion, or an increase of 134 percent, announced previously.

This scheme covers all employees with a salary of RM4,000 a month and below.

They must be working in a legally registered company as of Jan 1 and have contributed to Perkeso.

Companies who opt-in for this scheme must not retrench their workers for a total of six months, beginning from the first payment.

The wage subsidy for each individual retained are as follows:

• Companies with 200 staff and above - RM600
• Companies with 76 to 200 staff - RM800
• Companies with up to 75 staff - RM1,200

This was among the new RM10 billion stimulus measures announced by Prime Minister Muhyiddin Yassin (photo) for SMEs today.

In all, Muhyiddin said the subsidy scheme and other measures will secure jobs for two-thirds of the workforce.

Median wage in Malaysia as of November last year was RM2,308.

A RM600 subsidy was 26 percent of the median wage while a RM1,200 subsidy was 51.2 percent of the median wage.

In comparison, Singapore, which announced lockdown last week, will pay 75 percent of the wages of every Singaporean worker in employment, up to the first S$4,600 (RM14,017) for the month of April.

Previously, Putrajaya's wage subsidy scheme only covered firms which suffered a 50 percent drop in revenue since Jan 1.

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