Malaysia has unveiled its 2019 Budget, which is intended to implement institutional reform and reinvigorate the economy.
A new minimum statutory rate for employees over the age of 60 has been introduced as part of a range of new policies to encourage people who are past the retirement age to look for work. Therefore, as of 1 January this year, the employer portion of the Employer Provident Fund contribution has been cut to 4% from the previous 6%.
According to Propay Partners, the Cabinet has also decided to hand social security protection for foreign workers over to the Social Security Organisation (Socso). From 1 January this year, employers that hire foreign workers with valid documents, including expatriates, must register them with Socso and contribute to the Employment Injury Scheme (EIS) under the terms of the Employees' Social Security Act 1969 (Act 4).
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
OTHER STORIES THAT MAY INTEREST YOU
Understanding payroll in Malaysia
Malaysia has unveiled its 2019 Budget, which is intended to implement institutional reform and reinvigorate the economy.
A new minimum statutory rate for employees over the age of 60 has been introduced as part of a range of new policies to encourage people who are past the retirement age to look for work. Therefore, as of 1 January this year, the employer portion of the Employer Provident Fund contribution has been cut to 4% from the previous 6%.
According to Propay Partners, the Cabinet has also decided to hand social security protection for foreign workers over to the Social Security Organisation (Socso). From 1 January this year, employers that hire foreign workers with valid documents, including expatriates, must register them with Socso and contribute to the Employment Injury Scheme (EIS) under the terms of the Employees' Social Security Act 1969 (Act 4).
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
OTHER STORIES THAT MAY INTEREST YOU
Understanding payroll in Malaysia
