PRIHATIN Rakyat Economic Stimulus Package (Additional) - Part 1: Employer Related Measure

Dear fellow clients,
 
Greetings. Hope you are doing well.
 
In response to the previous Economic Stimulus Package (please refer to our previous email on Economic Stimulus Package 2020 (Prihatin Rakyat)), the Government has announced Additional PRIHATIN on 6 April 2020, which allocate RM 10 billion to reduce the burden of Small and Medium Enterprises (SMEs) during the pandemic. The additional PRIHATIN comprises of the following:

(1) Employer Related Measures 
(2) Financial Assistance
(3) Waiver or Discount on Rent
(4) Companies Commission of Malaysia
 

(1) Employer Related Measures
 
Enhancement of Wage Subsidy Programme (WSP)
The Government has increased the allocation for the WSP that was revealed in the first Prihatin Economic Stimulus Package. Under the additional measures, the allocation for this programme will be expanded from RM 5.9 billion to RM 13.8 billion. Please refer table below for further information:

Note: The loss of revenue should be calculated by comparing the revenue or sales in January 2020 compared to the subsequent months. Employer must produce the declaration form in PSU50 which declares that the employer has suffered that loss of revenue, together with the supporting documents such as financial statements or sales report that been certified by management. There is no requirement for the financial statements or sales report to be audited. However, employers who make a false declaration may be subject to legal action. 

Source: mpma.org.my/v4/wp-content/uploads/2020/04/200406_Soalan-Lazim-Program-Subsidi-Upah-Wage-Subsidy-PERKESO-latest-edited.pdf.pdf-1.pdf
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Reduction of Foreign Levy
Foreign workers levy (excluding domestic maids) is reduced by 25% in respect of foreign workers with work permit expiring during the period of 1 April 2020 to 31 December 2020. 

Government encourages employers to actively engage with their employees on employment terms including the options of pay cuts and unpaid leave during the Movement Control Order period. Employers and employees may refer to the Department of Labour to seek advice on solutions for issues raised. Any negotiations should be subjected to employment laws currently being enforced. 
 

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 If you need further clarification, please do not hesitate to contact our tax team.