DEAR MEMBER FIRMS
CLARIFICATION ON THE ELIGIBILITY OF MEMBER FIRMS FOR THE ENHANCED WAGE SUBSIDY PROGRAMME
In addressing the more intensive needs of small and medium enterprises (SMEs), the Government of Malaysia unveiled its supplementary stimulus package in less than two weeks after announcing a stimulus package amounting to RM250 billion on 27 March 2020 to buffer the impact of the COVID-19 outbreak. For a list of additional measures announced by the Government on 6 April 2020, please refer to MIA Statement to Members on Supplementary Stimulus Package for SMEs dated 6 April 2020.
Among the additional measures taken is the increase in the allocation for the wage subsidy program announced on 27 March 2020 to RM13.8 billion from RM5.9 billion, an addition of RM7.9 billion. Under this additional measure, all companies with local workers earning RM4,000 and below will receive wage subsidy assistance of between RM600 and RM1,200 depending on the number of employees. This assistance is for a period of three months and is restricted to employers registered with the Companies Commission of Malaysia (SSM), Social Security Organisation (SOCSO) or local authorities before 1 January 2020.
In the MIA Statement dated 6 April, it was highlighted that with the additional condition for wage subsidy, the Institute was seeking clarification on the eligibility of MIA member firms to apply for this wage subsidy programme with the relevant authorities and will keep members informed of the outcome.
We are pleased to inform that SOCSO has issued the latest FAQs on the wage subsidy programme (see Appendix) and it is clearly stated in Question 5 of the FAQs that professional services providers are eligible to apply for this programme if they can meet the requirements that are stipulated in the FAQs.
Please be guided accordingly.
MALAYSIAN INSTITUTE OF ACCOUNTANTS
DR. NURMAZILAH DATO’ MAHZAN
Chief Executive Officer