In his announcement about Pakej Rangsangan Ekonomi Prihatin Rakyat (PRIHATIN), which amounts to RM 250 billion, Muhyiddin assured us that all Malaysians would benefit from it.
RM 128 billion will be used for the good of the people, RM 100 billion will be used to support SMEs and RM 2 billion will be used to strengthen the country's economy.
For the employees, here are the initiatives that have been announced.
1. For employees in the medical field
500 million RM is handed over to Kementerian Kesihatan
Malaysia (KKM). The government will continue Assign an additional RM1
billion for the purchase of equipment and services to combat COVID-19,
including the use of specialist medical services by private health services.
In the first stimulus package, the government agreed to grant a special allowance to doctors, nurses and other medical personnel involved in fighting the pandemic.
Now the government
become Increase the special allowance from RM 400 to RM 600 per month
from April 1, 2020 until the outbreak.
2nd For security staff
The government will
extend a special allowance of RM200 per month to members of the military,
Police, customs, immigration, civil protection personnel and relatives of
RELA, which are directly involved in the implementation of motion control
This allowance will
also payable from April 1, 2020 until the COVID 19 outbreak subsides. A
An estimated 169,000 additional employees benefit from this.
3. For employees in other industries
The government will prepare
Bantuan Prihatin one-time cash allotment of almost RM10
billionthat for the first time is also directed to the M40
This includes employees
in the private sector FELDA settlers, farmers, fishermen, retailers and
all belonging to the M40 groups and below.
The total payment can
be broken down into:
- RM1.600 to almost 4 million households earn a monthly income of RM4,000
and under. Payment of RM1,000 will be made in April 2020 and RM600 in May
- RM1,000 to almost 1.1 million households Earn over RM4,000 to RM8,000.
RM500 will be paid in April 2020 and the remaining RM500 in May.
- RM800 to 3 million Individuals from the age of 21 with a per month
Income of RM2,000 and below. The RM500 payment will be paid in April 2020.
and the remaining RM300 in May 2020.
- RM500 to 400,000 Individuals over the age of 21 with monthly
Income from RM2,000 to RM4,000. A payment of RM250 will be made in April 2020
and the remaining RM250 in May.
4th Especially for civil servants
In recognition of the civil
the government will provide the staff contributions one-time cash support
from RM500 to over 1.5 million civil servants in Grades 56 and younger,
including contract workers. Payment will be made by April 2020.
5. For employees in service contracts
Employees in cleaning services and food supply in schools, public schools,
public educational institutions and other government agencies, including statutory ones
The government has
agreed to pay the salaries of the contractors involved for the duration of
the MCO even if employees are absent from work.
It is estimated that more
more than 80,000 employees will benefit from this initiative, one allocation
from 110 million RM.
In addition, the government
has also agreed extend the terms of the respective service contract by 1
month as a compromise with the duration of the MCO.
6. Protect employees
The government will be
Introduction a Wage subsidy program To help employers keep workers.
That is so
Employers can keep their workers and ensure that they continue to receive them
Through this program,
The government will provide wages from RM600 / month for 3 months.
It is aimed Employees
earn less than RM4,000 and Employers with a decrease of 50% in
Income since January 1st, 2020.
announced that employers need to make sure they Employees not fired
or tell them to take unpaid leave for 3 months after the program is over
Likewise, Are employers
may not deduct an employee's existing salary.
With an allocation of RM 5.9 billion, the move is expected to benefit 3.3 million workers.
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While employees are being looked after during this period, employers seem to have reached the short end of the staff.
Yes, there is the wage subsidy program, but that's it, aside from the option to delay payments, restructure, and reschedule employer contributions through the Employment Service on April 15, 2020.
Compare this to Singapore's measures in their recently announced resilience budget.
In summary, their government announced some special packages for HR managers and employers.
Some of them are:
- Job Support Scheme in which the government will compensate 8% of wages for each local employee up to a monthly wage ceiling of S $ 3,600 for three months.
- Wage loan program to co-finance wage increases for Singaporean workers who earn gross monthly wages of up to S $ 4,000.
- Corporate tax rebate for the tax year 2020 of 25% of the tax payable, limited to S $ 15,000 per company.
With examples like this, the government could actually do more to reduce the burden on employers.
Selected image source: Muhyiddin Yassin FB