Articles and news updates on payroll management and processing
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…
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…
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…
From January 2012, the Employers contribution for employees earning RM5,000.00 or less has been increased from 12% to 13%. Employees contributions remain at 11%, no change to the existing rate. Total monthly contribution to EPF would now be 24%, made up of 13% Employer contribution and 11% Employee contribution. For employees aged 55 and above,…
Prime Minister Datuk Seri Najib Tun Razak announced an allocation of RM70 million to SOCSO for financial benefit payments that is said will benefit about 6.5 million private sector employees. Under this Employment Insurance Scheme (EIS) or Sistem Insurans Pekerjaan (SIP), employees will get temporary financial assistance to support themselves while they look for employment. This…
The Employees’ Social Security (Amendment) Act 2015, tentatively due to come into force from 1st July 2016, increases the mandatory contribution from a monthly salary of RM3,000.00 to RM4,000.00. The maximum contributions by the employer and employee will also increase as follows: Employers from RM51.65 to RM69.15 Employees from RM14.75 to RM19.75
KWSP has made available the schedule of EPF contributions payable under the revised Employee contribution rate of 8% which is effective from March 2016. The schedule can be downloaded from here. Employers will continue to contribute 13%. Notis KWSP 17A Khas 2016 This is for employees who prefer to continue contributing 11% instead of the…
Overtime is the number of hours an employee works in excess of normal hours of work per day. The total hours of overtime is limited to 104 hours per month excluding rest days and public holidays. Rates for overtime payment are as follows: Normal days : 1.5 times the hourly rate for each hour Rest…
Payroll involves time consuming tasks that will need to be repeated every month. It is a non revenue generating function of your business, but needs to be handled on a timely and efficient way if you are to keep your employees motivated and happy. For small businesses, managing payroll can be a challenging and time-consuming…
Prime Minister Datuk Seri Najib Tun Razak announced, on 30th April 2012, the introduction of Malaysia’s first minimum wage that will cover employees in all sectors excluding those employed as domestic help. For Peninsular Malaysia, the minimum wage has been set at RM900.00 while that in East Malaysia and Labuan is RM800.00 The rates will…