The Ministry of Human Resources, through SOCSO has initiated a new programme to help employees that are affected by the COVID-19 outbreak. This is part of the PRIHATIN economic stimulus package as announced by Prime Minister Tan Sri Muhyiddin Yassin.

Through this new programme, businesses who have experienced a drop in revenue of over 50 percent since 1 January 2020 can apply to SOCSO to subsidise their employees’ wages. The subsidy involves paying RM600 over three months, for every employee earning under RM4000 that is registered and paying into SOCSO’s Employment Insurance System (EIS) .

To obtain this benefit, employers are not allowed to lay off workers, cut their wages, or ask them to take unpaid leave during the three months that the program is active.

In a statement, Human Resources Minister Datuk Seri M. Saravanan said that a total of RM5.9 billion has been allocated to his ministry through the EIS for the initiative. Aside from reducing the burden on employers, this programme also allows businesses to retain their workers amidst the COVID-19 economic slowdown.

Employers can apply for the programme via the SOCSO website. Payment of the subsidy will be credited directly into the employer’s account within seven days of application and approval starting 1 April 2020.


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