The Dewan Rakyat has passed amendments to the Employees Provident Fund (EPF) Act 1991, making EPF contributions mandatory for foreign workers starting in the fourth quarter of 2025. Both employers and foreign employees will contribute 2% of monthly wages, a rate lower than the 11% employee and 12%–13% employer contributions required for Malaysian workers. This…
Employing foreign workers in Malaysia entails specific obligations for employers, encompassing visa requirements, salary computations, and statutory deductions. Adherence to these regulations ensures legal compliance and fair treatment of foreign employees. Visa and Work Permits Before employing a foreign worker, employers must secure the appropriate work permit or visa. The primary categories include: Employment Pass…
In Malaysia, the Monthly Tax Deduction (MTD), also known as Potongan Cukai Bulanan (PCB), is a system where employers deduct income tax from their employees’ salaries on a monthly basis. This mechanism ensures a more manageable tax payment process for employees and facilitates timely tax collection for the government. Basis of MTD Calculation: The calculation…
The Inland Revenue Board of Malaysia (LHDN) has introduced the e-PCB Plus Portal as a part of its initiative to enhance the efficiency and accuracy of Monthly Tax Deduction (MTD or PCB) management for employers. This system, which integrates seamlessly with the MyTax portal, is set to replace previous systems like e-PCB, e-Data PCB, and…
Why Consider Outsourcing? In today’s fast-paced business environment, outsourcing your accounting and payroll functions can be a game-changer. It not only streamlines operations but also provides significant cost savings. By partnering with specialized service providers, you can focus on what you do best—growing your business. Cost Efficiency One of the primary advantages of outsourcing accounting…
Human Resource management is a critical function in all businesses regardless of size. Managing your workforce, equipping them with the necessary skills and knowledge, while providing opportunities for career development ensures the business achieves its goals and objectives more efficiently and effectively. People are the most valuable aspect of any organization. Key functions of HR…
The Employment (Amendment) Act 2022 was passed in Parliament and has come into force on 1 January 2023. We highlight below some of the major changes that will affect HR compliance. Maximum Working hours Working hours has been reduced to 45 hours per week. The previous limit was 48 hours per week. Work hours exclude…
Finance Minister Tengku Zafrul Abdul Aziz tabled Budget 2023 in the Dewan Rakyat on 7th October 2022. Some of the highlights include: Reduction in personal tax rate Taxable income Rate 50,001 to 70,000 13% to 11% 70,001 to 100,000 21% to 19% Women returning to work after career break Income tax exemption from 2023 until…
Tax Relief For Individuals Tax relief Current W.E.F Y/A 2021 Personal tax rate for chargeableincome range in between RM50,001 to RM70,000 14% 13% Medical treatment of serious illness(personal, spouse and child) Maximum RM6,000 Maximum RM8,000 Complete medical examination Maximum RM500 Maximum RM1,000 Parents’ medical expenses, special needs and parental care Maximum RM5,000 Maximum RM8,000 Vaccination…
August 2018 Datuk Seri Dr Wan Azizah, who is also Women, Family and Community Development Minister, said the 2% contribution by the husbands to their non-working wives would be taken from the 11% they contributed to their own EPF account from their salary. The proposal to pay Employees Provident Fund (EPF) contribution to housewives does…