The Malaysia Budget 2022 is set out to ensure the nation is on the right track towards recovery from the pandemic. Some of the statutory updates that will impact payroll once gazetted are as follow:
1) Statutory rate for employees’ Employees Provident Fund (EPF) share of 9% contribution will be extended until June 2022
The government's decision to extend the minimum 9% of employees’ statutory contribution rate for another six (6) months is a move to acknowledge the current economic challenges face by its members.
The extension, which can be opted out if members choose to, will take effect from January 2022 wages (February 2022 contribution) until June 2022 wages (July 2022 contribution). After which, the minimum statutory contribution rate for employees will return to 11%. However, for employees who wish to maintain their contributions rate at 11% can do so by updating EPF.
Source: https://budget.mof.gov.my/pdf/2022/ucapan/touchpoints-en.pdf | Page 13
2) Increase in the monthly salary ceiling for Social Security Organisation (SOCSO) and Employment Insurance System (EIS) from MYR4,000 to MYR5,000
The government also intends to increase the insured monthly salary ceiling from MYR4,000 to MYR5,000 to improve the overall social security coverage for the nine million active workers covered by SOCSO.
In conjunction with the change, the tax relief limit will be increased from MYR250 to MYR350, and the scope of relief for SOCSO contributions will also be expanded to cover employee contributions through EIS.
Source: https://budget.mof.gov.my/pdf/2022/ucapan/touchpoints-en.pdf | Page 8
Get in touch with us at info@payrollserve.com.my or +603 2787 5605 for more details.
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