in ,

PM Says Employers Can Discuss Wage Cuts & Unpaid Leaves With Employees

Our PM Tan Sri Muhyiddin Yassin did a live speech on Apr 6, He has mentioned that in this extension of the new economic package being offered by the government to employees and employers, the federal government will permit both parties to discuss on the possibilities of wage cuts or unpaid leaves in order for SMEs to overcome the economic slowdown.

Credit : The Star

In order for this to be beneficial to both parties while abiding by federal law, he urges all parties to refer to the Labour Department to resolve any conflicts that may arise in these discussions.

“I understand the difficulties that businesses are facing now in terms of retaining their employees during this difficult time.

“As such, the government allows both employees and employers to discuss on a possibility in change regarding employment terms, which may include pay cuts or taking unpaid leave during the Movement Control Order period.” he said.

Credit : Malay Mail

He has also stressed that any arrangements made should be both mutually beneficial to both the employee and the employer, and that the rights of both parties must be upheld.

PM Tan Sri Muhyiddin Yassin also had said on Apr 6 that the wage subsidy programme announced on March 27 would be expanded from RM5.9bil to RM13.8bil, an increase of RM7.9bil.

Credit: Digital news

The programme was part of an additional package, valued at RM10bil, intended to ease the financial burden of SMEs and subsequently assure that two-thirds of the workforce will remain employed.

Employers who want to apply for the wage subsidy scheme targeted at small and medium enterprises (SMEs) can send in their applications to the Social Security Organisation (Socso) starting Thursday (April 9) and the applications can be done online at

Source : The Star | RTM