KUALA LUMPUR: The government will extend the Wage Subsidy Programme worth RM5 billion for another three months to promote employee retention and reduce layoffs.
Prime Minister Tan Sri Muhyiddin Yassin, in announcing the Economic Recovery Plan (Penjana), said the wage subsidy was well received when it was introduced in the Prihatin Rakyat Economic Stimulus Package in March and April.
"The earlier three-month programme saved 2.2 million jobs.
"To help companies during the reopening of the economy, the government will extend this wage subsidy for another three months," he said.
He added that the wage subsidy is set at RM600 per month per employee, for up to 200 workers per company.
Muhyiddin said that under this initiative, the wage subsidy would also be applicable for employers in the tourism sector or other sectors prohibited from operating during the Conditional Movement Control Order.
"Employers are allowed to apply for the wage subsidy for employees on unpaid leave, but employees must receive the subsidy directly."
Meanwhile, Muhyiddin said the government would introduce a Hiring Incentive Programme worth RM1.5 billion to encourage the hiring of the unemployed.
He said it was estimated that this incentive would benefit 300,000 job seekers through two initiatives.
"The first is to hire unemployed people aged below 40, with an incentive of RM800 per month per worker.
"The second is to hire unemployed people aged 40 and above and disabled persons with an incentive of RM1,000 per month per worker," he said, adding that the incentives would be provided for up to six months.