Why are highly skilled workers excluded from the Wage Subsidy Programme?

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Highly Skilled Workers Excluded from Wage Subsidy Programme Due to Income Threshold

Highly skilled workers earning RM4,000 per month or more are not eligible for the Wage Subsidy Programme (PSU) because the initiative is specifically designed to assist lower-income workers, primarily from the B40 group, who have been most severely impacted by job losses due to Covid-19. The government introduced the PSU to provide financial aid to those in the RM4,000 and below income bracket.
Purpose and Eligibility of the Wage Subsidy Programme (PSU)

The Wage Subsidy Programme was established as a measure to alleviate the economic fallout of the pandemic on vulnerable segments of the workforce. Its core objective is to support employees earning RM4,000 and below per month, who constitute an estimated 75 per cent of those who have lost their jobs. This programme aims to prevent further unemployment and provide a safety net for low-income households that are disproportionately affected by business closures and downsizing.
Coverage Under the Employment Insurance System (EIS) Act

For workers in the management category who have experienced termination of employment, including those earning above RM4,000 monthly, the Employment Insurance System (EIS) Act (Act 800) provides a framework for support. The EIS offers benefits such as the Job Search Allowance, which is accessible to eligible individuals regardless of their previous income level, provided they meet the criteria set out in the Act. This system ensures that even higher-earning professionals who lose their jobs can receive assistance during their period of unemployment.
Economic Impact on Different Income Groups

The Covid-19 pandemic has had a varied impact across different income strata in Malaysia. While the Wage Subsidy Programme targets the B40 group to mitigate immediate financial distress, the significant number of layoffs among highly skilled workers, including managers, professionals, and technicians, highlights broader economic challenges. Between January and November 27 of the current year, a total of 99,696 workers were laid off, with over 59 per cent of those being highly skilled individuals, indicating that job losses are not confined to lower-income brackets but also affect those in professional and managerial roles.
Factors Contributing to Layoffs

The Deputy Human Resources Minister indicated that while various government initiatives and stimulus packages were implemented to cushion the pandemic's effects, layoffs were unavoidable in certain sectors. Contributing factors cited include business closures, downsizing operations, voluntary and mutual separation schemes, severe financial difficulties faced by companies, partial operational shutdowns, corporate takeovers, and relocation of businesses. These factors collectively led to job losses across sectors such as manufacturing, hospitality, food and beverage, retail, construction, and transportation.

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Why are highly skilled workers excluded from the Wage Subsidy Programme?

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