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Byadmin

Reduction of Statutory Contribution Rate For Employees – 11% to 7%

With reference to the Government’s announcement on the 2020 Economic Stimulus Package on 27 February 2020, the employee’s share of the Employees Provident Fund (EPF) statutory contribution rate will be reduced from 11 per cent to seven (7) per cent.

1.    The new statutory contribution rate for employees will affect April 2020’s wage (May 2020’s contribution) up to December 2020’s wage (January 2021’s contribution) subject to the Third Schedule of the EPF Act 1991.

2.    The new statutory contribution rate for employees applies to those below 60 years old who are liable for contribution. The statutory contribution rate for employees aged 60 years old and above however, remains unchanged.

Option to maintain employee contribution rate of 11 per cent 
Members may choose to maintain the employee contribution rate at 11 per cent by completing Borang KWSP 17A (Khas 2020). This form must be submitted to the EPF via employers and will take effect from the following month. Download the form here: https://www.dropbox.com/s/r5im49mzxlcyk0z/Borang%20KWSP%2017A%20%28Khas%202020%29.pdf?dl=0

 

Byadmin
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Latest Update: Minimum Wage Increase to RM1,200 Per Month in Major Cities Starting 1 February 2020

The minimum wages rates payable to an employee who works in a place of employment in any City Council or Municipal Council areas specified in the Schedule shall be as follows:

Minimum wages rates
Monthly Daily Hourly
Number of working days in a week
6 5 4
RM1,200 RM46.15 RM55.38 RM69.23 RM5.77

 

LIST OF CITY COUNCIL AREAS:

  1. Johor Bahru
  2. Iskandar Puteri
  3. Alor Setar
  4. Melaka Bersejarah
  5. Pulau Pinang
  6. Seberang Perai
  7. Ipoh
  8. Shah Alam
  9. Petaling Jaya
  10. Kuala Terengganu
  11. Kuching Utara
  12. Kuching Selatan
  13. Miri
  14. Kota Kinabalu
  15. Kuala Lumpur
  16. Seremban

LIST OF MUNICIPAL COUNCIL AREAS:

  1. Batu Pahat
  2. Kluang
  3. Kulai
  4. Muar
  5. Segamat
  6. Pasir Gudang
  7. Kulim
  8. Sungai Petani
  9. Langkawi
  10. Kubang Pasu
  11. Kota Bharu
  12. Alor Gajah
  13. Jasin
  14. Hang Tuah Jaya
  15. Port Dickson
  16. Jempol
  17. Kuantan
  18. Temerloh
  19. Bentong
  20. Manjung
  21. Kuala Kangsar
  22. Taiping
  23. Teluk Intan
  24. Kangar
  25. Ampang Jaya
  26. Kajang
  27. Klang
  28. Selayang
  29. Subang Jaya
  30. Sepang
  31. Kemaman
  32. Dungun
  33. Padawan
  34. Sibu
  35. Kota Samarahan
  36. Bintulu
  37. Sandakan
  38. Tawau
  39. Labuan
  40. Putrajaya

For more information, refer to the Federal Government Gazette – Minimum Wages Order 2020

Minimum Wage RM1,200
Byadmin
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Minimum Wage Increase to RM1,200 Per Month in Major Cities Starting 1 January 2020

The government has decided that the minimum wage increase to RM1,200 a month in major cities under the administration of 57 City Councils and Municipal Councils.

The minimum wage for other major urban areas remains at RM1,100 per month.

MAJOR CITIES LISTING

  1. Bandaraya Johor Bahru
  2. Bandaraya Iskandar Puteri
  3. Bandaraya Alor Setar
  4. Bandaraya Melaka Bersejarah
  5. Bandaraya Pulau Pinang
  6. Bandaraya Seberang Perai
  7. Bandaraya Ipoh
  8. Bandaraya Shah Alam
  9. Bandaraya Petaling Jaya
  10. Bandaraya Kuala Terengganu
  11. Bandaraya Kuching Utara
  12. Bandaraya Kuching Selatan
  13. Bandaraya Miri
  14. Bandaraya Kota Kinabalu
  15. Bandaraya Kuala Lumpur
  16. Bandar Batu Pahat
  17. Bandar Kluang
  18. Bandar Kulai
  19. Bandar Muar
  20. Bandar Segamat
  21.  Bandar Pasir Gudang
  22. Bandar Kulim
  23. Bandar Sungai Petani
  24. Bandar Langkawi
  25. Bandar Kubang Pasu
  26. Bandar Kota Bharu
  27. Bandar Alor Gajah
  28. Bandar Jasin
  29. Bandar Hang Tuah Jaya
  30. Bandar Seremban
  31. Bandar Nilai
  32. Bandar Port Dickson
  33. Bandar Jempol
  34. Bandar Kuantan
  35. Bandar Temerloh
  36. Bandar Bentong
  37. Bandar Manjung
  38. Bandar Kuala Kangsar
  39. Bandar Taiping
  40. Bandar Teluk Intan
  41. Bandar Kangar
  42. Bandar Ampang Jaya
  43. Bandar Kajang
  44. Bandar Klang
  45. Bandar Selayang
  46. Bandar Subang Jaya
  47. Bandar Sepang
  48. Bandar Kemaman
  49. Bandar Dungun
  50. Bandar Padawan
  51. Bandar Sibu
  52. Bandar Kota Samarahan
  53. Bandar Bintulu
  54. Bandar Sandakan
  55. Bandar Tawau
  56. Bandar Labuan
  57. Bandar Putrajaya

For more information, refer to the Kenyataan Media Pelaksanaan Gaji Minimum RM1,200 Sebulan di Bandar-Bandar Utama

Byadmin

Minimum Wages Order (Amendment) 2018

The Minimum Wages Order (Amendment) 2018 gazette issued on November 28, 2018 will be effective on January 1, 2019 with the following amendments:

1.The minimum wages rates, standardised across the country, are as follows:

Minimum Wages Rate
Monthly Daily  Hourly
RM1,100 6 working days a week RM42.31 RM5.29
5 working days a week RM50.77
4 working days a week RM63.46

2. For employees who are not paid basic wages but based on piece rate, tonnage, task, trip or commission, their monthly wage payable shall not be less than RM1,100.

Byadmin
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SOCSO & EIS Payment via SOCSO Assist Portal/Internet Banking wef 1 January 2019

Please be informed that all employers will need to use Portal Assist Perkeso/internet banking for statutory payment and employee updates for SOCSO and EIS with effective from 1 January 2019.

Click Here to download the official circular for your reference.

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