Employees who are severely affected by the Full Movement Control Order (FMCO) and the recently announced EMCO can look forward to some financial aid from SOCSO. The Wage Subsidy Scheme or PSU 3.0 is still open for applications until 31 July while PSU 4.0 will commence on 1 August 2021. For the latter, there will be no salary limit for applicants.
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The Wage Subsidy Scheme or better known as PSU will be extended for the fourth time since March 2020. PSU 4.0 will have an allocation of RM3.8 billion and is expected to benefit more than 2.5 million workers. VIA PSU 4.0, 500 workers will be supported per employer with each worker receiving assistance of RM600 for 4 months.
This move is aligned with the Employment Retention Program (ERP) which was first announced under the PRIHATIN Economic Stimulus Package in March 2020. The ERP program has been consolidated under the Wage Subsidy Program (PSU) since 15 June 2020.
Earlier this year, PM Muhyiddin Yassin announced that the PSU or Wage Subsidy Program will continue for 2021. Compared to the year before – there will be no limitation to the business sector; each employer is allowed to apply to SOCSO for the assistance provided.
Previously, only certain sectors were eligible to apply for PSU. However, due to the ongoing Covid-10 pandemic and the subsequent MCO 2.0, this requirement has been relaxed.
- For the tourism and retail sector, PSU 3.0 comes into force on January 1, 2021.
- For PSU PERMAI, it involves all sectors in any state that is experiencing MCO, effective as of 19 January 2021.
- The deadline for PSU 3.0 applications was extended from 30 June to 31 July 2021.
Once it is approved, they will receive a wage subsidy of RM600 for employees earning below RM4,000 each month. In addition, the wage subsidy limit of 200 employees for each employer has been increased to 500 employees.
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What are the financial incentives under PSU 4.0?
During the recent PEMULIH economic aid package announcement, the PM and SOCSO have decided to revise the PSU 4.0 starting from 1 August 2021, for a period of 4 months. Under this initiative:
- The first 2 months is open for all sectors
- The remaining 2 months is specifically only for sectors that are under a negative list at that time
- Open for all employees earning more than RM4,000 a month
What are the requirements for the PSU 4.0 application?
- Local workers earning below and above RM4,000 (there is no salary limit)
- Limited to 500 employees per company
- Employers and employees must have contributed to SOCSO on the date before 1 January 2021.
- Business is registered with the Companies Commission of Malaysia (SSM).
- Employer must retain all employees who are considered to receive this wage subsidy. All employers are required to include this subsidy information in their employees’ payslips.
- The list of related sector activities has been detailed in www.myfuturejobs.gov.my.
Who are not qualified for PSU 4.0?
- Employers and employees who have not registered or contributed with SOCSO before 1 January 2021;
- Employer or company that registers SSM/ROS/ROB/PBT or other establishments and operating on or after 1 January 2021;
- Employers who have not registered with the Inland Revenue Board;
- Employers who are not from the tourism and retail sectors except employers operating in states involved with PKP;
- Employees who have been laid off;
- Employees currently employed under the Generator Incentive program Career (Hiring Incentive);
- Public sector employees, federal and state statutory bodies, all statutory body remunerated remuneration, Local Authority (PBT) and those who are self-employed (have no employer);
- Foreign workers and expatriates; and
- Employers who withdraw from PSU 4.0 application after their application was approved by SOCSO
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How to apply for PSU 4.0 & when is the deadline?
Each application must be submitted online. Do take note that applications must be done by the employer on behalf of the employee involved. Your employer is responsible for distributing the RM600 payment to you (the affected employee).
Your employer must submit a complete application through prihatin.perkeso.gov.my and attached the mandatory documents:
- List of employee names (according to enterprise size eligibility limit);
- Employer’s bank account information (copy of the front page of bank statement only);
- Business Registration Number (BRN) information registered by the employer during the bank account opening. Do ensure BRN No and Account No is accurate to avoid any inconvenience;
- Copy of registration of SSM / ROS / ROB / PBT or other organizations;
- PSU 4.0 Declaration; and
- For enterprises of 76 employees and above shall submit supporting documents such as financial statements or sales report that has been verified by management or other related documents
The PSU 4.0 applications will start from 1 August 2021.
Employees can check the list of employers’ names that have been approved for PSU applications on the SOCSO website.
More information is available on SOCSO’s site. Alternatively, you can call its Customer Service Line at 1-300-22-8000 or submit your inquiry via email to [email protected] or submit a complaint/inquiry via SOCSO Facebook.
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This article was originally published as Affected by MCO 3.0? Get Your RM600 Financial Aid From SOCSO! by Loanstreet.com.my. and is written by Nisya Aziz.