Employment Retention Program (Program Pengekalan Pekerjaan)

What is Employment Retention Program?

Employee Retention Program (ERP) is an immediate financial assistance worth RM600 monthly for employees who have been instructed to take unpaid leaves by their employers who are economically affected by the Covid-19 pandemic.

What are the benefits under the ERP?

Under the ERP, each eligible employee will receive RM 600.00 a month from PERKESO throughout the period they are put on unpaid leave (up to a maximum of 6 months).

Who doesn’t qualify for the ERP?

The ERP would not be eligible to the following employees:

  • Employees who are not registered with the Employment Insurance System;
  • Employees who are earning above RM 4,000 a month;
  • Employees who have already been terminated;
  • Civil servants or employees of statutory bodies and local authorities;
  • Foreign employees and trade officers; and
  • Those self-employed, including freelancers.

How do I apply for the ERP?

All ERP applications would have to be submitted by the employers on behalf of their employees through the Prihatin PERKESO website (https://erp.perkeso.gov.my/).

What supporting documents are required to apply for the ERP?

  1. ERP C-19 Application Form;
  2. Employer’s bank account statement (front page only);
  3. List of affected employees (in an Excel format); and
  4. Notice of unpaid leave from the employer (sample letter as below)

How long is the period for ERP assistance?

The period of assistance is between one to six months, depending on the unpaid leave notice issued by employers.

Can employers apply for both ERP and the wage subsidy programme both at the same time?

An employer cannot apply for ERP and the wage subsidy programme for the same employee for the same months.

How does the employee receive the ERP payment?

The ERP payment of RM 600 will be credited to the employers’ account. Employers are required to credit the payment directly to the affected employees’ accounts within 7 days upon receipt of payment from PERKESO. Employers who fail to do so will be subject to legal action.

Does an employer have to apply for the ERP every month?

No, the ERP application only has to be submitted once.

What happens if an employee is terminated after the notice of unpaid leave has ended? Do they still receive the ERP?

Employees who have been terminated after the notice of unpaid leave has ended are no longer be entitled to ERP. However, these employees can apply to PERKESO for benefits under the Employment Insurance System.

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