Wage Subsidy Should Be Based On Worst Hit Industries Not Company Size




CORONAVIRUS | The qualification for the different quantum of wage subsidy should be distributed according to how badly an industry has been impacted by the Covid-19 pandemic instead of company size, said Bersatu Youth chief Syed Saddiq Syed Abdul Rahman
"Bersatu Youth's proposal is for the wage subsidy to be studied and distributed according to the economic impact on a particular industry based on the company's monthly revenue," he said in a statement today
The Muar MP said this is to ensure the companies are able to pay the remaining salaries with the help of the wage subsidy, thus averting retrenchments
Under the government's additional stimulus plan to help small and medium-sized enterprises (SMEs), all companies with local employees earning a monthly salary of RM4,000 will qualify for wage subsidies of between RM600 to RM1,200 depending on company size
For companies with more than 200 workers, the government will offer RM600 a month for every retained local worker for up to 200 workers
For companies with 76 to 200 employees, the government will offer a wage subsidy of RM800 a month for every retained local employee and for firms with 75 employees or less, they will get RM1,200 for every retained local employee
The wage subsidy will be for three months and the companies receiving the aid must be registered with the Companies Commission of Malaysia and the Social Security Organisation since January
These were revised measures from the initial tier-less RM600 wage subsidy for every employee who earns RM4,000 or less and reserved for companies whose incomes have fallen by 50 percent since the start of the year
Under the revision, the condition on the 50 percent income decline is waived for companies with 75 workers or less. - Mkini

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