Employee Retention Programme (ERP) and Wage Subsidy Programme (WSP)

The main differences between ERP and WSP are as below:

1️⃣Employee Retention Programme

✔️For employee who agrees to take up to 6 months (min. 30 days) unpaid leave, starting from 1 March 2020.

✔️Financial assistance of RM600 per month paid to employee, who earns a salary of RM4,000 and below, for a maximum period of 6 months (unpaid leave period).

2️⃣Wage Subsidy Programme

✔️For employer who must ensure no retrenchment / wages reduction / unpaid leave and also retain his/her employee for at least 6 months (3 months during the employer receives the subsidies and 3 months thereafter).

✔️Subsidy of up to RM1,200 per month paid to employer for each employee earning a salary of RM4,000 and below for a period of 3 months, subject to other terms and conditions.

⚠️👉The interpretation of Wage or Salary as per the Employment Insurance System Act 2017, it includes overtime payment, but excludes travel allowance, bonus and special expenses incurred.

For more information, please click the links below:

  1. FAQs on WSP dated 7 April 2020 by Human Resource Ministry
  2. FAQs on ERP dated 18 March 2020 by PERKESO
  3. FAQs on WSP dated 14 April 2020 by PERKESO

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