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Just over a month since its launch, the Social Security Organisation (Socso) has stopped processing applications for its employee retention programme (ERP) due to a lack of funds.
On its Twitter page yesterday, it said this was effective April 22.
“For your information, applications for the ERP were stopped in full effective from April 22 as there has been no injection of additional funds.
“Therefore, any new applications made after that date will not be processed,” it said in reply to a query about the continuity of the programme.
Untuk makluman permohonan untuk Program Pengekalan Pekerjaan (ERP) telah ditamatkan sepenuhnya berkuatkuasa pada 22 April 2020 memandangkan tiada peruntukan dana tambahan. Oleh itu, sebarang permohonan baharu yang dibuat selepas tarikh berkenaan tidak akan diproses.
— PERKESO | SOCSO (@PERKESOofficial) April 30, 2020
A check on Socso’s website found a similar announcement.
Announced on March 16, the ERP is immediate financial assistance for private sector employees who had been placed under unpaid leave due to the Covid-19 outbreak.
Depending on the amount of unpaid leave employees were instructed to take, they could qualify for RM600 a month for between one and six months.
Prime Minister Muhyiddin Yassin previously expected that the programme would benefit 33,000 workers and cost the government RM120 million.
In a tweet that followed, Socso urged employers to apply for its wage subsidy programme instead.
Announced as part of the government’s economic stimulus package, the programme subsidises wages for those earning RM4,000 and below based on the number of employees a company has.
For firms with 75 staff or less, the government will subsidise RM1,200 per employee.
For firms with between 76 and 200 employees, the government will subsidise RM800 per employee.
For firms with 201 or more employees, the government will subsidise RM600 per employee.
Firms who take up the wage subsidy programme must retain their staff for the next six months.
Applications for the wage subsidy programme can be made here… https://psu.perkeso.gov.my/
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