Bosses pocketed more than RM500k in wage subsidies, employees claim

  • Nation
  • Saturday, 26 Sep 2020

JOHOR BARU: Hundreds of workers have complained that their employers abused the Wage Subsidy Programme and pocketed more than half a million ringgit meant for them.

Human Resources Minister Datuk Seri M. Saravanan (pic) said investigations were currently being carried out on those complaints.

The wage subsidy programme was introduced to help employers, who are economically impacted due to the Covid-19 pandemic, and to make sure they could continue operating while retaining jobs.

“To date, we have received complaints on 89 employers who had abused the wage subsidy programme.

“The complaints involved 846 workers and subsidies amounting to RM670,000,” he said after attending the state-level Human Resources Development Fund Penjana Initiative programme here yesterday.

“We will take stern action against them, including blacklisting them from the programme and having legal action taken against them,” he said.

Saravanan revealed that the ministry also found that 1,663 employers had falsified applications for the programme by using fake Companies Commission of Malaysia certificates.

“We are investigating the matter and will take action against those involved.

“I warn companies against taking advantage of the programme as this was initiated to help those in need,” he said.

The unemployment rate, he said, currently stood at 4.7% – a significant decline from the 5.3% unemployment rate in May.

“We have managed to reduce the unemployment rate to 4.9% in June with the many initiatives taken by the government, including the Employment Retention Programme and Wage Subsidy Programme.

“The unemployment rate has now dropped to 4.7% and we hope that all the efforts we have put in would further reduce the unemployment rate,” he said.
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