Reasons Why Wage Subsidy Applications Were Rejected

Nikki Blog
by Nikki Blog
Jun 28, 2020 at 3:36 PM

According to Social Security Organisation (SOCSO), the two main reasons why some Wage Subsidy Programme (WSP) applications were rejected were failure to fill in the correct Business Registration Number (BRN) and employer’s bank account number.

SOCSO chief executive Datuk Seri Dr Mohammed Azman Aziz Mohammed stated some of the employers account numbers were also inactive or they could not be reached thus contributed to more problems.

“SOCSO is very concerned over this matter and we sympathise employers who have yet to receive the WSP payment,” he said in a statement today.

Mohammed Azman said any employer who has not received the payment can communicate with him directly through his email [email protected] or contact the hotline at 1-300-22-8000 or visit any SOSCO office.

Wage Subsidy Programme

The CEO said SOCSO would make every effort to ensure that the WSP payment will be handed out to all qualified employers.

WSP was launched by the government to support employers who are economically affected as a result of COVID-19 and to ensure they can proceed to operate their company while stopping the workers from losing their jobs.

Employees with a wage of less than RM4,000 per month are qualified for the subsidies with the amount depending on the size of the company’s workforce.


WSP Updates So Far

Prime Minister Muhyiddin Yassin announced the short-term Economic Recovery Plan (Penjana) in early June. Under Penjana, the WSP is extended for three more months. On 9th June, the government decided to consolidate the Employment Retention Programme into the WSP.

From June 15 onwards, the WSP will allow employers to apply for wage subsidy for their workers who have been put on unpaid leave.

After the extension of WSP under Penjana, SOCSO decided to loosen up several conditions which include allowing flexibility of reducing existing working hours or salary with the approval of workers as well as involving an agreement between employers and employees.

Recently, the government has been notified that there are companies that did not send the money provided under the Prihatin Rakyat Economic Stimulus Package’s (Prihatin) Wage Subsidy Programme to their employees, therefore violating the conditions set.


Source: The Edge Markets

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