Wage Subsidy
The Wage Subsidy Programme (PSU) is a financial assistance programme paid to employers for all local employees earning RM4,000 or less. In 15th June 2020, this program has been combined with the Employment Retention Program (ERP) program to further benefit people who have been directed to take an unpaid leave from the following industries. Key Objective of this program is to help businesses stay open during the MCO periods by helping the employers pay and retain their employees.
AN OVERVIEW
Throughout the Pandemic, Malaysia’s Job Market was shaken to its core as it faced a threat which it has never faced before. In response to this, the Malaysian Government utilised monetary injections to help struggling businesses pay their employees. Through this injections it has managed to stave off rising unemployment rates throughout the start of the Pandemic till today 2021. Based on Malaysia’s Department of statistics the steep climb in unemployment peaked in May 2020 at its highest. Through Malaysia’s constant efforts, the unemployment rate dropped and has only a marginal increase from month to month towards 2021.
Wage Subsidy Program (PSU) 1.0
RM 12.84 b
Approved Amount
322,177
Business approved
4.89M
Employees are approved
Total Approved & Disbursed Amount as at June 2021
Number of Employers Approved and Distributed As of June 2021
Number of Employees Approved and Distributed As of June 2021
Wage Subsidy Program (PSU) 2.0
RM 1.397
Billion
Approved Amount
80,934
Business approved
713,820
Employees are approved
Total Approved & Disbursed Amount as at October 2021
Number of Employers Approved and Distributed As of October 2021
Number of Employees Approved and Distributed As of October 2021
Wage Subsidy Program (PSU) 3.0
RM 3.074
Billion
Approved Amount
158,651
Businesses Approved
1,479,428
Employees Approved
Total Approved As of October 2021
Number Approved As of October 2021
How Wage Subsidy has Contributed during COVID-19
To help both employees & companies to continue operations, the Wage Subsidy Programme (PSU) has been established to facilitate in the maintenance of the company and its employees. By providing this aid, based on a recent analysis from Department of Statistics Malaysia (DOSM), Malaysia has shown only a small percentile of increase in unemployment for Q1 2021. This reflects the effectiveness of the fund to curb higher rates of unemployment in Malaysia. The government has also recognise that there is an immediate need for cash by the employees and has provided swift payments to the impacted individuals upon approvals.
