Wage subsidy program extended another three months

The government is extending the wage subsidy program for another three months to address the rising unemployment rate as a result of COVID-19 pandemic in the country.

Prime Minister Tan Sri Muhyiddin Yassin said the government is allocating RM9 billion for that purpose which would benefit three million people through several initiatives.

"First, the RM5 billion Wage Subsidy Program Expansion. Since the introduction of the PRIHATIN Package and the additional PRIHATIN SME, the wage subsidy program has been welcomed by both workers and employers.

"The three-month program has saved over 2.2 million jobs.

"To assist companies in the transition phase of the economic reopening, the government will extend this wage subsidy program for another three months," he said in his special address on the Short-Term Economic Recovery Plan (ERP) here on Friday.

He added that due to the gradual reopening of the economy, the wage subsidy was set at RM600 per month per employee with each company set a maximum limit of 200 employees.

"For workers in the tourism sector and those sectors that are involved in economic activities prohibited during the CMCO period, and have been ordered to take unpaid leave, employers can apply for wage subsidies provided that workers receive direct subsidised payments," he said.

In addition, the government has allocated RM1.5 billion for the Employment Incentive Program which benefits 300,000 job seekers through two incentives.

"To encourage recruitment by employers, the government will introduce the Employment Incentive Program where companies will be given financial incentives to provide jobs to the unemployed and youth.

"First, the incentive to hire unemployed people under 40 years old is RM800 per employee.

"Second: An incentive to employ unemployed people 40 years old and above and the disabled of RM1,000 a month," he added.

The incentives will be given for six months, he said.