1) Study on starting salary for each employment sector to be ready in October 2017
The Human Resources Ministry is conducting a study to determine the starting salary for each employment region, in particular those related to tertiary graduates.
Its minister, Datuk Seri Richard Riot said the effort became finished to enhance the income schemes in Malaysia to keep pace with the current financial situation.
“The take a look at consists of job placement from the city to rural regions according to their respective districts. Hopefully, it can be completed in six months,”
To read more about this article: click here
2) Employers must apply for foreign workers via online from April 1, 2017
PUTRAJAYA: It is obligatory for all employers applying to hire foreign workers (blue collar) to perform online registration starting April 1, 2017 says Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Ahmad Zahid who’s also Home Minister, stated the ruling become applicable for applications for foreign workers (blue collar) from all source countries, except for foreign domestic helpers.
To read more about this article: click here
3) Maintain retirement age at 60, says MEF
KUALA LUMPUR: Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan said the age of retirement need to be maintained at 60.
He stated any efforts to increase the age of retirement need to be done on a voluntary foundation among organization and employees.
“I would choose to now not increase the current retirement age and like it to be maintained at 60,” he said when contacted with the aid of Astro AWANI.
To read more about this article: click here
4) Online systems, ePPAx, SPPA introduced to recruit foreign workers
PUTRAJAYA: The government has implemented two online systems, namely the Integrated Foreign Workers Management system (ePPAx) and Foreign Worker Application System (SPPA) to make it easy for employers to recruit foreign workers.
Home Ministry Secretary-General Datuk Seri Alwi Ibrahim stated the ePPAx was for the consumption of all foreign workers from all different source countries except Bangladesh, whilst the SPPA machine turned into only for the intake of Bangladeshi people.
He said the system was added following the statement through Deputy Prime Minister and Home Minister Datuk Seri Ahmad Zahid Hamidi that each employer trying to recruit foreign employees had been required to apply through online platform, beginning April 1, 2017.
To read more about this article: click here
5) SOCSO issues more than RM300,000 in compounds to errant employers
KUALA LUMPUR: The Social Security Organisation (SOCSO) has issued compounds totaling greater than RM300,000 to employers who didn’t register for employees.
SOCSO leader government officer Datuk Dr Mohammed Azman Datuk Aziz Mohammed said it involved 500 employers who had failed to sign up their employees during the prescribed amnesty duration at some point of March.
To read more about this article: click here
6) EPF sees more members migrating to Simpanan Shariah in 2018
KUALA LUMPUR: The Employees Provident Fund (EPF) expects to see more members migrating to the shariah-compliant retirement scheme from 2018 onwards. This is due to the positive dividend to be announced in 2017, said Chief Executive Officer Datuk Shahril Ridza Ridzuan. He said with about 45 per cent of investment assets being shariah-compliant, prior to the introduction of the scheme, EPF expected to grow these assets by an average RM25 billion a year.
To read more about this article: click here
Congratulations! you’ve got simply landed an interview for a marvelous job. And what? A prospering interview are going to be essential so as for you to lock in a career offer, and this is often your only chance to impress the hiring manager enough to get employed.
Tips for Acing An Interview
Taking the time to organize yourself can allow the interview process, which might be draggy, run perfectly well. Here’s recommendation on a way to ace employment interview, as well as recommendations on each side of the interview from preparation through follow-up.
Conduct Company analysis
Research should be your first task to do once accepted the interview. Gathering background data on employers is crucial to a winning interview session.
The company will expect you to understand about their corporate, and expect you to share the reason why you’ll suit growing your career with them. You please be ready to answer the queries, “How do you know about us / company?” and “Why do we hire you?”
Knowing the corporate’s past performance and future plans may also assist you higher justify however you’ll be able to add more value to the company.
Before the interview, review the company’s website, significantly their “About Us” section. Check out their LinkedIn, Facebook, Twitter, and Google+ pages to examine what data the corporate is sharing. Do not be afraid to contact your prospective hiring manager to request details on the position you’re interviewing for or request for company literature.
Practice Makes Perfect
Practice makes good (or a minimum of results in improvement). Conduct follow interviews with closed friend or senior, and ask their feedback. You can do voice / video recording on your responses thus you’ll be able to review your answers and check your visual communication.
Prepare answers to usually asked interview queries. Doing this can assist you analyze your background and qualifications for the position.
Also prepare an inventory of queries you wish to raise the interviewer. Remember, you are not merely attempting to be employed for a wrong job which doesn’t suit you.
You will be confident enough walking in to the interview if you are prepared enough. The more you practice, the more you can be relaxed and be yourself during the interview. Your answers will be natural, and interviewers are going to have a good impression about you.
Be ready for various types of Interviews
It is necessary to understand what kind of interview you’ll have, thus you’ll be able to effectively prepare. For instance, you’ll prepare slightly differently whether it’s your 1st, second, or final interview. There will be different types of interview nowadays such as the common one through phone interview, online video interview, online video recording, coffee interview at café and so on. You will need to practice all these kind of interviews with your closed friends.
You might even have a group interview which conducted by a panel of recruiters with the hiring managers, or together with a group of candidates through a group discussion. For this type of interview, you wish to follow each responsive queries and being a decent beholder (which you’ll be able to show by responding thoughtfully to your cluster members’ comments and thru your body language).
Make sure you recognize what type of interview you’ll be having beforehand. If you’re unsure, don’t hesitate to give a call to the hiring manager / recruiter.
Other Types of Interview Questions — Behavioral Interviewing
In addition to standard interview techniques, behavior-based interviewing is becoming more common. It is based on the idea that a candidate’s past performance is the best predictor of future performance. Behavioral interviews involve you answering questions about how you have handled past situations at work.
The best way to prepare is to make a list of your skills, values, and interests as well as your strengths and weaknesses. For each item on the list, consider a time when you displayed that quality. Take the time to compile a list of responses to common behavioral interview questions.
What to Wear
You will wish to determine what to wear before the interview day. Your 1st impression is incredibly crucial, and what you wear could be an important part of that 1st impression. Therefore, you wish to form yourself a positive you look, professional and smart looking, most important you are comfortable with the dressing. In general, men tend to wear a dark suit and tie, and ladies typically wear a dark suit or a shirt with dark pants or a skirt, depending on what type of interview will be conducted and also what is the industry of the business.
E.g. You might be ready to dress casual smart for employment at a startup, or employment at an area with an informal work surroundings. However, once unsure, it’s higher to decorate a lot of professionally than under dressed.
Good Luck With Your Up-Coming Interview!
About The Expatriate Services Division (ESD)
1. What is the ESD?
The Expatriate Services Division (ESD), under the Immigration Department of Malaysia, is a one-stop centre which facilitates company registration with a customer centric approach.
2. Why do I need to go to the ESD?
The Expatriate Services Division (ESD) enables companies to submit expatriate-related immigration information online to facilitate the application process involved in registering and approving companies that wish to hire expatriates.
3. What are the type of services offered at the ESD?
The ESD offers registration services for companies who wish to employ eligible expatriates. In addition, ESD also facilitates expatriate related passes for Embassy and any temporary manual applications. All companies will need to register with the ESD as a first step.
Through ESD’s Malaysia Expatriate Talent Service Centre (MYXpats Centre), ESD approved companies can apply for a range of expatriate passes which includes: the Employment Pass, the Residence Pass-Talent, the Professional Visit Pass and related passes such as the Dependant Pass, the Long-Term Social Visit Pass, or the Visit Pass (Temporary Employment) – Foreign Maids.
4. Who should I liaise with at ESD?
There are several Immigration officers who are ready to assist you at the Expatriate Services Division (ESD). You may liaise with any Immigration Officer at ESD to seek clarification on any related matter pertaining to expatriate passes.
5. Why do I have to register via the Expatriate Services Division (ESD)?
Companies need to obtain approval through ESD before applying for expatriate passes. Companies registering via the ESD’s online system will enjoy an improved, safe and secure online experience in the application process.
1. Is my company eligible to register with the ESD?
There are two requirements needed before companies can proceed with the ESD registration. Please go through the requirements details below.
1. Company must be registered with:
- a. The Companies Commission of Malaysia (SSM) under Companies Act 1965; or
- b. The Registry of Societies Malaysia under the Organisation Act 1966; or
- c. Associations/Cooperatives registered under the laws of Malaysia.
2. Company Paid-up capital*
EQUITY PAID-UP CAPITAL 100% Local Owned RM250,000 Joint Venture (minimum foreign equity is 30%) RM350,000 100% Foreign Owned RM500,000 Foreign owned companies running Wholesale, Retail and Trade (WRT) License is compulsory. Refer to the Ministry of Domestic Trade, Co-operatives and Consumerism WRT license application guideline RM1,000,000
* Not applicable to incorporated and limited companies, and associations/organisations under the laws of Malaysia.
2. How do I register online for company registration?
Applications can be made via the ESD website at esd.imi.gov.my. Please ensure you have all the required documents below before proceeding with registration:
- 1. Copy of all company director’s MyKad or Passport copy.
- 2. Company Profile
- 3. Copy of Company’s Phone Bill
- 4. Tenancy Agreement/Sales & Purchase Agreement (S&P)
- 5. e-SSM Printout
- 6. SSM Form 9
- 7. SSM Form 24
- 8. SSM Form 49
- 9. Latest Financial Report
- 10. Copy of Local Authorities License – Lesen Pihak Berkuasa Tempatan (PBT) (if applicable)
- 11. Other business licenses (WRT, CIDB, other SSM forms, or any other supporting documents)
3. How long does it take for my company to be registered?
Following the submission of all required documents are in order, it takes fourteen (14) working days for the process to be completed. The company registration process flow is as below:
- Step 1: Create account (register online)
- Step 2: Submit application online
- Step 3: Application in process by Immigration officer
- Step 4: Status notification
- Step 5: Company activation
4. What do I do after my company has been registered successfully?
Companies can login to the ESD website and begin submitting their applications to hire expatriates.
5. I did not receive any activation account. What should I do?
Check your junk or spam folder. If the activation email still cannot be found, kindly email email@example.com to request for the activation email to be sent again.
6. How can I retrieve my company’s login ID and password?
Please use the “FORGOT PASSWORD” feature on the ESD website. A new password will be sent to the ESD registered email address which you have used to activate your account.
7. How can I amend information about my company (such as the company name, ROC number, email address, etc.)?
Kindly submit a letter on the company’s letterhead to the ESD at Unit Inspektorat to notify us on any change of information.
ESD Company Activation
1. Why do I need my director to sign the Letter of Undertaking (LoU) and how long does the process take?
The company Director is required to sign the LoU to ensure that he acknowledges the responsibility for all transactions by the company. This would also protect the interest of the company. In addition, it is vital that the company appoint the right individual to be given access and manage the company’s account under the MYXpats Centre system. This is done only ONCE and the whole process takes no longer than 10 minutes, based on scheduled appointment via ESD online.
2. Can someone else represent my director for the submission of the LoU?
No. A company Director has to be present for the submission of the LoU.
3. Can the company change the appointed person in the LoU at a later time?
Yes. The existing company Director nominated to sign the LoU may change the appointed person at a later time. However, should the appointed Director changes in the company, the new Director is required to sign the LoU.
Kindly submit a letter on the company’s letterhead to the ESD at Unit Inspektorat to notify us on any change of information.
4. How long will it take to complete company activation?
Company activation will take no more than 10 minutes.
Submission of Expatriate Talent Projections
1. Why does my company have to submit a projection for expatriate talent requirements to the ESD?
This is to ensure that company planning and estimation for expatriate talent are based on realistic estimates derived from the company’s annual business plan and/or project requirements.
2. How long will it take for my company’s expatriate projection submission to be processed?
Under the Client Charter, it will take 5 working days to process submissions.
3. If my company submits a projection for 20 expatriates, does this mean that MYXpats Centre will approve all 20 expatriate permits at once?
No, all expatriate Employment Pass applications will be assessed on an individual basis, based on the merits of each application submitted.
1. Where is the ESD located?
The Expatriate Services Division (ESD) is located at the Immigration Department of Malaysia, Level 3 (Podium), No.15 Persiaran Perdana, Presint 2, 62550 Putrajaya.
2. What is the ESD’s operating hours?
The ESD is open from Monday to Friday at 8:30am to 4:30pm.
3. How can I get more information on the ESD?
Statutory Payroll Contributions In Malaysia
Employees Provident Fund
The compulsory contributions under the Employees Provident Fund (EPF) Act 1991:
|Age Group 60 years and below|
|Employers||a) Monthly wages RM5,000 and below – Minimum of 13% of the employees’ monthly wages
b) Monthly wages exceed RM 5,000 – Minimum 12% of the employees’ monthly wages
|Employees||Minimum of 11% of the employees’ monthly wages @|
|[Third Schedule (Part A) of the EPF Act 1991]|
|Age Group 60 – 75 years and below|
|Employers||a) Monthly wages RM 5,000 and below – Minimum of 6.5% of the employees’ monthly wages
b) Monthly wages exceed RM 5,000 – Minimum of 6% of the employees’ monthly wages
|Employees||Minimum of 5.5% of the employees’ monthly wages @|
|[Third Schedule (Part C) of the EPF Act 1991]|
@ The Employees Provident Fund (EPF) clarifies that the reduction of the statutory contribution rate for employees from 11% to 8% is for employees below age 60 while the reduction from 5.5% to 4% is for employees above age 60, starting from March 2016 wage/salary until December 2017.
The reduction in the contribution rate involves two categories of employees:
a) Members/employees below age 60
The reduction of contribution rate from 11% to 8% is subject to the amount of wage/salary as stipulated in Part A and Part B of the Employees Provident Fund Order (Amendments to the Third Schedule) 2016, EPF Act 1991.
b) Members/employees above age 60
The reduction of contribution rate from 5.5% to 4% is subject to the amount of wage/salary as stipulated in Part C and part D of the Employees Provident Fund Order (Amendments to the Third Schedule) 2016, EPF Act 1991.
The contribution rate for employers, however, remains at the current rate.
The rates of contribution for employers and employees effective 1 March 2016 can be referred to the Third Schedule, EPF Act 1991 (click here to download). Employers must refer to the schedule for payment of contribution.
Foreign workers and expatriates
All foreign workers and expatriates and their employers are exempted from compulsory contributions. They can, however, choose to contribute and the applicable rates are as follows:
|Age Group 60 years and below|
|Employers||RM5.00 per employee per month|
|Employees||11% of the employees’ monthly wages|
|[Third Schedule (Part B) of the EPF Act 1991]|
|Age Group 60-75 years and below|
|Employers||RM5.00 (US$1.56) per employee per month|
|Employees||5.5% of the employees’ monthly wages|
|[Third Schedule (Part D) of the EPF Act 1991]|
Source: Employees Provident Fund – www.kwsp.gov.my
Social Security Organisation (SOCSO)
The Social Security Organisation (SOCSO) administers two social security schemes for workers earning wages not exceeding RM4,000 per month (Amendments with effective 1 Jun 2016). Once covered, employees remain covered irrespective of their wages. However, the maximum contribution is based on wages of RM4,000 per month (Amendments with effective 1 Jun 2016).
There are two schemes administered by SOCSO Act, namely:
- Employment Injury Scheme which provides social insurance coverage against workplace accidents, occupational diseases and commuting accidents to and from place of work.
- Invalidity Pension Scheme provides 24 hours coverage against invalidity arising from any cause and not necessarily relating to work environment.
Under these schemes workers are entitled to medical benefits; temporary and permanent disablement benefits; constant attendance allowance; dependent’s benefit or survivors pension; funeral, rehabilitation, education benefits; and invalidity pension.
The Employment Injury Scheme is funded solely by the employer with the contribution of 1.25% and the Invalidity Scheme is funded with the contribution of 1% which is shared equally by employers and employees. This rate of contribution is capped at the invaluable wage of RM4,000. This contribution is mandatory by law.
All Malaysian employees including permanent residence whom have been employed by an employer under a contract of service or apprenticeship are liable under SOCSO’s act.
Categories of employees exempted from SOCSO’s coverage are:
- Employees of Federal and State Government (except employees who are employed as temporary or contract employees are liable under the Act effective from 1 June 2013)
- Domestic servants
- Spouse of a sole proprietor or partners
- Foreign workers (since 1 April 1993)
Source: Social security Organisation (SOCSO) – www.perkeso.gov.my
Human Resources Development Fund (HRDF)
The Human Resource Development Fund (HRDF) operates on the basis of a levy/grant system. Employers who have paid the Human Resources Development levy will qualify for training grants from the HRDF to defray or subsidise training costs for their Malaysian employees.
Companies from Manufacturing and Mining and Quarrying* sectors covered under the Pembangunan Sumber Manusia Berhad Act, 2001 are as follows:
|Categories of Employers||Rate of Levy Contributions|
|Employers with 50 Malaysian employees and above||1% of employees’ monthly wages|
|Employers with 10 to 49 Malaysian employees with a paid up capital of RM2.5 million and above||1% of employees’ monthly wages|
|Employers with 10 to 49 Malaysian employees with a paid up capital of less than RM2.5 million are given the option to register with HRDF||0.5% of employees’ monthly wages|
*Effective from 1 June 2014, the coverage under the Pembangunan Sumber Manusia Berhad Act, 2001 has been extended to cover sub-sectors under the Mining and Quarrying Sector that comprises companies with the business activities of petroleum and gas extraction and mineral and stone quarrying.
Source: Pembangunan Sumber Manusia Berhad (PSMB) – www.hrdf.com.my
General DOs & DON’Ts for EPF/SOCSO/HRDF contributions and Monthly Tax Deductions (MTD) submissions
- Must pay by 15th of the following month or immediate preceding day if it falls on a weekend or Public Holiday.
- Advisable to include a reasonable time frame for cheque/payment clearance. Otherwise any subsequent payments after the deadline due to payment(s) returned will subject to late payment penalty.
Summary of Employment Laws in Malaysia
EMPLOYMENT ACT, 1955
The Employment Act, 1955 is the main legislation on labour matters in Malaysia.
The Employment Act provides minimum terms and conditions (mostly of monetary value) to certain category of workers :-
- Any employee as long as his month wages is less than RM2000.00 and
- Any employee employed in manual work including artisan, apprentice, transport operator, supervisors or overseers of manual workers, persons employed on vessels and even domestic servants are classified as employees even if their wages is more than RM2000.00 per month.
|Paid maternity leave||:||60 days|
|Normal work hours||:||Not exceeding eight hours in one day or 48 hours in one week|
|Paid holiday||:||At least 11 gazetted public holidays ( inclusive of five compulsory public holidays; National Day, Birthday of the Yang Dipertuan Agong, Birthday of Ruler/Federal Territory Day, Labour Day and Malaysia day) in one calendar year and on any day declared as a public holiday under section 8 of the Holiday Act 1951|
|Paid annual leave for employees:|
|Less than two years of service||:||8 days|
|Two or more but less than five years of service||:||12 days|
|Over five years of service||:||16 days|
*Minimum paid annual leave to be provided for employees
|Paid sick leave per calendar year:|
|Less than two years of service||:||14 days|
|Two or more but less than five years of service||:||18 days|
|Over five years of service||:||22 days|
|Where hospitalisation is necessary||:||Up to 60 days (inclusive of the paid sick leave entitlement stated above)|
*Minimum paid sick leave to be provided for employees
|Payment for overtime work:|
|Normal working days||:||One-and-a-half times the hourly rate of pay|
|Rest days||:||Two times the hourly rate of pay|
|Public holidays||:||Three times the hourly rate of pay|
Source: Ministry of Human Resources – www.mohr.gov.my
Children and Young persons (Employment) Act 1966
- To prevent the exploitation of child labor
- Under 14 years – only light work in family’s business
- 14-16 years – In light work that does not involve the use of machinery
- A maximum of 7 hours per day
- Only able to work between 8am – 6pm
Employment (Restriction) Act 1968
- Non-Malaysian citizens are required to obtain a valid work permit before they can be employed locally.
- Working without a valid work permit is strictly illegally under the Immigration Act 1966.
Occupational Safety and Health Act 1994
- This Act which provides the legislative framework to secure the safety, health and welfare among all Malaysian workforce and to protect others against risks to safety or health in connection with the activities of persons at work.
- Section 15 outlines the duties of the employer includes maintenance of plant and systems that are safe and without risk to health, provides information, instruction, training and supervision to ensure the safety and the health at work.
- Section 16 requires the employer to formulate safety and health policy at the workplace and regularly revise the policies to align the policies with changes and best practices in the business world.
- Safety and Health Policy is to demonstrate the company’s commitment and concern to ensure safety and health at place of work. Issues on safety and health stated in the policy must be taken into account.
Please refer to Department of Occupational Safety and Health for further details
Factories and Machinery Act 1967
- Gives protection in terms of health and safety for all workers working in factories regardless of sex
- The jurisdiction of the act covers all factories
Minimum Wages Order 2016
- Minimum wage has been implemented in 2013 and has been closely observed thereafter.
- Minimum wages is basic wages, excluding any allowances or other payments.
|MINIMUM WAGES RATE (as per Minimum Wages Order 2016)|
|Number of days worked in a week|
|Sabah, Sarawak and Labuan||RM920||RM4.42||RM35.38||RM42.46||RM53.08|
- The Minimum Wages Policy also applies to employees who are paid on piece-rates, tonnage, trip- or commission-based. Employers are required to supplement the wages of these employees if their income does not meet RM1,000 per month for Peninsular Malaysia and RM920 for Sabah, Sarawak and Labuan.
Minimum Retirement Age Act 2012
- The minimum retirement age increased from 55 to 60 for civil servants and the private sector employees in Malaysia.
- The act doesn’t prevent employees from choosing to retire early if the contract of service or collective agreement permits earlier retirement.
- The new law will impose a fine of 10,000 ringgits on any employer found guilty of requiring an employee to retire prior to age 60. However, the legislation does not prevent employees from choosing to retire earlier than age 60 if the service contract or collective agreement that applies to their job permits an earlier retirement date
Workman’s Compensation Act 1952
- Enforced by the Labour Department
- Only foreign workers are covered under this Act in respect of compensation for employment injury as well as non-employment injury vide Workmen’s Compensation (Foreign Worker’s Scheme) (Insurance) Order 199
- To provide compensation to workers who have accidents at work or who contract employment-related diseases.
- Encompass: • Foreign workers earning RM 900 per month
- Employers must take out an insurance policy to cover liability under the act.
- What Should Be Done If A Worker Is Involved in an Accident
- Each worker involved in an accident must inform the employer within 7 days from the date of such accident except in the even of fatal accident.
- An employer must notify the nearest Department of Labour from the place of accident in writing. Such notice must be submitted within 10 days from the date of accident.
- An employer shall ensure that all information is with full details and supporting documents are enclosed such as medical certificate or death certificate.
- An employer must ensure that compensation settlement as determined by the Department of Labour are paid direct to the injured worker by depositing such payment to the Department of Labour as directed.
- However, compensation settlement cannot be paid direct to the wife, children or dependants, but to be deposited to the Department of Labour concerned. • Failure to notify the Department of Labour in the event of an accident is an offence and the employer shall be liable, on conviction to a fine of RM5,000 for the first offence and RM10,000 for the second offence.
Tax Planning for Individual Income Tax in Malaysia
Individual Tax Planning for 2016 – How to Save More Taxes
Individual Tax Planning for 2016 should be completed before 31 December 2016. This is important to estimate your income taxes for 2016, qualify for the right tax deductions, and ultimately to reduce your taxable income and pay less taxes.
It’s TOO LATE to wait until end of the year. Plan ahead in order to save more taxes. Here are key steps you can take before the end of the year to lower your 2016 tax bill.
1. Estimate Your Taxes
Start with estimation of your taxable income for year 2016, know your effective tax rate and plan for your tax bills for year 2016.
SME (Company/LLP with paid up capital less than RM2.5 million), the income tax rate will be 19% for the first RM500,000 chargeable income. If your individual’s effective tax rate is higher than 19%, it will be more tax efficient to tax the business income under Company/LLP.
On the other hand, if your individual’s effective tax rate is lower than 19%, you may want to swift the business income to be taxed under individual through payment of directors’ fees, remuneration and etc. (subject to tax deductibility rules under Income Tax Act)
2. Maximization of Tax Deductions
Tax deductions reduce your taxable income. Your total deductions are subtracted from your taxable income in order to determine your total taxable income for the year. Make full use of the available tax reliefs will save you more taxes.
Below are the common tax deductions for resident individual which includes approved donations / gifts and tax reliefs. Please click for complete lists for reliefs, tax deductions and rebates
Medical Check-Up RM500
Get a full medical examination for yourself, spouse or child and you will be entitled for a tax relief up to RM500
PURCHASE OF BOOKS/MAGAZINES – RM1,000
exclude newspapers or banned reading materials
EDUCATION FEES (SELF) – RM7,000
any course of study up to tertiary level in any approved institution in Malaysia:
(i) up to tertiary level (other than a degree at Masters or Doctorate level), for the purpose of acquiring law, accounting, Islamic financing, technical, vocational, industrial, scientific or technological skills or qualifications; or (ii) any course of study for a degree at Masters or Doctorate level.
PURCHASE OF PERSONAL COMPUTER FOR INDIVIDUAL – RM3,000
This qualification does not cover the purchase of equipment which is capable of computer operating functions such as tablet and mobile phones. The deduction is allowable only once in every 3 years.
NET DEPOSIT IN SKIM SIMPANAN PENDIDIKAN NASIONAL (SSPN) – RM6,000
Skim Simpanan Pendidikan Nasional (SSPN-i) is a savings scheme or instrument specially designed by the Perbadanan Tabung Pendidikan Tinggi Nasional (PTPTN) for higher education. Tax relief is given on amount deposited in SSPN by an individual for his children’s education is deductible up to a maximum of RM6,000 (with effect from the year of assessment 2012 to 2017). The allowable deduction is limited to the net amount deposited in that basis year only.
PURCHASE OF SPORTS EQUIPMENT – RM300
Sports equipment includes equipment with short lifespan e.g. golf balls and shuttlecocks but excluding sports attire, e.g. swimsuits and sports shoes.
PRIVATE RETIREMENT SCHEME AND DEFERRED ANNUITY – RM3,000
Private Retirement Scheme (PRS) is a voluntary long-term investment scheme designed to help individuals accumulate savings for retirement.
In addition, Malaysia government giving PRS youth incentive of RM500 to contributors who participate in the PRS scheme with accumulated a minimum gross contribution amount of RM1,000 within a year. This incentive will be made available for a period of 5 years from 2014 to 2018.
EDUCATION AND MEDICAL INSURANCE – RM3,000
insurance premiums in respect of education or medical benefits for an individual, husband, wife, or child
3. Increase your EPF Contribution
The employer’s portion of EPF will not be subject to personal income tax for the employee (regardless of any % contributed by the employer).
However, from the employer’s perspective, tax deduction can only be claimed up to 19% for the employer’s tax purposes.
A company contributes 25% of employer’s EPF to the employee.
The 25% EPF contribution is an expenses of the company. However, the company can only claims 19% as deductible expenses for corporate income tax reporting. The remaining 6% is non-deductible expenses.
No impact on the employee. The employee will still be subjected to personal income tax on his gross salary (exclude the employer’s EPF portion).
Most of the companies in Malaysia that contribute additional EPF to the employee will not contribute more than 19% as there is no tax benefit for the Company.
4. Restructure your Remuneration Package
Housing Accommodation (unfurnished)
– employee or service director – Lower of 30% of cash remuneration * or defined value of accommodation
– directors of controlled companies – Defined value of accommodation
Petrol card/petrol or travel allowances and toll rates
Total amount paid by employer. Exemption up to RM6,000 per annum if the allowances/perquisites are for official duties**
Childcare subsidies /allowances
Total amount paid by employer. Exemption up to RM2,400 per annum**
Interest on loan subsidies
Loans totalling RM300,000 for housing/passenger motor vehicles and education**
** Exemptions are not extended to directors of controlled companies, sole proprietors and partnerships.
5. Keep Documents and Records
All supporting documents and records to your Tax Returns (e.g. insurance premium receipts, parents’ medical bills and dividend vouchers) need to be kept for 7 years.
For receipts or bills that are less inky, do make a photocopy. Alternatively, scan and keep the electronic copy for easy retrieval later.
6. Get Professional Help
Consider hiring a qualified tax consultant through Career88 to help you plan and prepare taxes effectively. We could help you to lawfully maximize deductions and reliefs that are specific to your situation could bring significant savings in the long run.
Should you have any questions about Individual Tax Planning, please email us at firstname.lastname@example.org for a no-obligation consultation.
Requirement to Apply for Expatriate Posts
(For further details, please refer to Immigration Department of Malaysia)
The minimum requirements to apply for expatriate posts are as follows:
- Degree with at least 3 years ‘experience in the relevant field; and/or
- Diploma with at least 5 years ‘experience in the relevant field; and/or
- Technical Certificate or equivalent, with at least 7 years ‘experience in the relevant field.
- Must be appointed as a Director of the company AND / OR holds a key position in the company
Employment Pass (Category I)
- Applicant must earn a basic salary of minimum RM5,000 per month; AND
- Applicant must have an employment contract valid for a minimum of 24 months
- Allows the holder to be employed in West Malaysia by the hiring company
- Spouse and children under 18 years old of Employment Pass holder are eligible for Dependant Pass (refer to page 21)
- Children over 18 years old and unmarried are eligible for Social Visit Pass (Long Term) (refer to page 22)
- Parents / Parents-in-law are eligible for Social Visit Pass (Long Term) (refer to page 22)
- Eligible to hire foreign maid(s) (refer to page 23)
- Renewal of the pass can be considered depending on the requirements
Employment Pass (Category II)
- Applicant must earn a basic salary of minimum RM5,000 per month; AND Applicant has an employment contact valid for less than 24 months
- Allows the holder to be employed in West Malaysia by the hiring company
- Spouse and children under 18 years old of Employment Pass holder are eligible for a Dependent Pass (refer to page 21)*
- Children over 18 years old and unmarried are eligible for Social Visit Pass (Long Term) (refer to page 22)*
- Parents/Parents-in-law are eligible for Long Term Social Visit Pass (refer to page 22)*
- Eligible to hire foreign maid(s) (refer to page 23)
- Renewal of the pass can be considered depending on the requirements
Employment Pass (Category III)
- Applicant earns a basic salary between RM2,500 to RM4,999; AND
- Applicant’s employment contract must not exceed 12 months
- Allows the holder to be employed in West Malaysia under the hiring company;
- Not allowed to bring dependents;
- Not eligible to hire foreign maid
- Can be renewed for maximum two (2) times, subject to review
- It is mandatory for Employment Pass (Category III) successful applications to obtain
- Visa with Reference for entry into the country (only applicable for countries requiring visa)
Dependant Pass (DP)
- Legal spouse of Employment Pass holder; OR
- Children below 18 years old of Employment Pass holder
- Allows the holder to stay in West Malaysia
- Employment not allowed and requires conversion to Employment Pass
- For social and welfare purposes, the holder may request for special permission to undertake activities from the Immigration Department of Malaysia
Social Visit Pass (Long Term)
- Children above 18 years old and unmarried of Employment Pass holder; OR
- Parents & Parents-in-law of Employment Pass holder; OR
- Common law spouse (only applicable to heterosexual relationship) of Employment Pass holder can be considered
- Allows the holder to stay in the country
THE NEED FOR RECRUITMENT PROCESS OUTSOURCING
Recruitment is the process of finding a suitable person for a position in an organization. We’re now in a world where business execution isn’t limited to geographical locations and this brings up the relevance of outsourcing the recruitment process. Before recruitment can be deemed successful, the candidates must have successfully passed through some steps.
The hiring strategy is usually developed by the Human Resources Manager/Coordinator (HRM/C) and Hiring Manager. It’s also advisable for the recruitment partner to work closer with the hiring manager rather than the HRM. This plan usually calls for proper planning and assessment so as to hire the most qualified person for the job.
The HR Manager
The primary role of a HR manager is getting the right people at any cost to be gainfully employed in an establishment while focusing on staff retention. The HR manager must have an in-depth knowledge of what is happening in the global business arena (the international HR business practices). Apart from organizing the recruitment plan, it’s also at the discretion of the HR manager to implement training schedules for already employed staff of the establishment as the company can only grow when the workforce grows. Asides training, another key performance index for the HRM is an evaluation of the staff turnover rate.
However, one of the enormous challenges of new companies is getting reliable and dependable managers to help run their recruitment plan successfully. The scarcity of qualified HR manager has made the speed at which companies would have loved to expand their sales to decrease. So, directly or indirectly, the caliber of HR manager tends to make an impact on the overall running/activity of the establishment.
Steps For Efficient Human Resource Program
Foremost in creating an effective HR program/a successful business practice, the issue of favoritism should be eradicated, and every person should be granted equal opportunities. In our contemporary world today, foreigners are usually given preference to the locals of the home company. For a start, benefits and bonuses should be regulated, and the differences amongst expat/locals pay should be brought to a minimal. Though worthy of note is the qualifications of the applicants which tends to play a significant role in the payment aspect.
More efforts should be placed on the training of bright young graduates and expose them to the latest technological trends. The fast-growing markets call for empowered candidates who can withstand the rigor of the competitive marketplace.
The job description should be a guide to prospective candidates in knowing more about the company and the responsibilities that accompany the position. Interview questions should also be reviewed periodically and adhere to the international standard.
The minimum requirements are essential qualifications or criteria which are enacted and announced to potential applicants. The skills required should not be significantly high, about 3-5 core competencies could be highlighted so as not to discourage qualified prospective candidates. For a managerial position, there are technical skills which could be inputted so as to employ the most qualified candidate.
175 Helpful Questions To Ask At A Job Interview
Although the article says ‘company, company, company’, the questions are relevant if you’re applying for a position at any other kind of organization.
- Questions 1-71 are about the job itself
- Questions 72-111 are about the company
- Questions 112-131 are about the boss
- Questions 132-162 are about the team
- Questions 163-175 are about feedback and next steps
- Why has this job opened up?
- Is this a new position? If not, what did the previous employee go on to do?
- How long has this position existed?
- How would you describe the responsibilities of the position?
- What tools are available to perform the role’s responsibilities?
- What would you consider to be the most important aspects of this job?
- Can you tell me about the competencies necessary to perform this job?
- What types of skills do you NOT already have on board that you’re looking to fill with a new hire?
- What improvements or changes do you hope the new candidate will bring to this position?
- What do you think are the most enjoyable or gratifying aspects for someone in this role?
- What would you say are the top personality traits someone needs to do this job well?
- What happened to the last person who held this job?
- Would you want me to do anything different from the previous person(s) in the position?
- What were the major strengths and weaknesses of the last person who held this job?
- May I talk with the last person who held this position?
- How many people have held this position in the last two years?
- How many people will you be interviewing for this position?
- How would you describe the ideal candidate?
- Thinking back to the person who you’ve seen do this job best, what made their performance so outstanding?
- How would you define “success” for this position?
- What particular aspects about my background and experience interest you?
- What makes you think I will be successful in this job? Does anything cause you concern about my candidacy?
- How can I most quickly become a strong contributor within the organization?
- Are there any useful kinds of experience that I could try to get that may help my progress?
- Will the work be similar most days, or will there be some variety from day to day?
- What kind of authority does this position have?
- Would I manage any employees?
- What sort of budget would I have for running the team?
- While I know this is an entry level position, would I have the chance to participate in strategy or client-oriented meetings?
- Will I have exposure to clients? If so, how much?
- How much opportunity will I have for decision-making in my first assignment?
- What decisions can be made immediately without having to ask permission or get approval (from a higher level, or a committee)?
- How does upper management view the role and importance of this department and this position?
- How important does upper management consider the function of this department/position?
- If I’m offered the job, how soon would you like me to start?
- If I’m offered the job, how should I best prepare before I start?
- Does the position have a probationary/trial period? If so, how long is it?
- If I were to start tomorrow, what would be the top priority on my to-do list?
- What are the most immediate challenges of the position that need to be addressed in the first three months?
- Can you give me a 6-12 month outlook on this position and where you see it going?
- How does this position fit into the company’s long-term plans?
- What kind of induction or training will I complete when I begin the job?
- Will I be given an employee handbook?
- What are typical work hours? Is overtime expected?
- Do employees normally work overtime? What is expected on that front?
- How would you describe a typical week/day in this position?
- What’s the salary range?
- Do you provide any non-financial assistance, e.g. time off for studies?
- What benefits, bonuses or perks come with the job?
- After the initial minimum salary, are increases standard for all associates or is there an “award” system? If there is such a system, on what basis is the “award” made and by whom?
- Are salaries tied to the cost of living index?
- Are salary adjustments geared to the cost of living or job performance?
- How do you envision this position supporting you?
- How will you judge my success? What will have happened six months from now that will demonstrate that I have met your expectations?
- What are the performance expectations of this position over the first 12 months?
- What are the avenues for promotion?
- How does one advance in the company?
- What are the prospects for growth and advancement?
- What are the opportunities for progression and increased responsibility within the organization?
- What are the career paths in this department?
- Where have successful employees previously in this position progressed to within the company?
- Are there any changes coming that will affect the department or role?
- Is relocation a possibility?
- What is your organization’s policy on relocation/transfers to other cities?
- How often can I expect to relocate during the initial years of employment with your organization?
- How much travel is expected?
- What is the most challenging thing to get used to in this position?
- What are the hazards of the job?
- Do you have health and safety meetings?
- Is there safety equipment I’ll be expected to wear? Will I receive training in how to use it? When?
- What sort of equipment would I be supplied with? Would I get my own desk?
- Tell me some of the reasons people like working here.
- What do you see ahead for the company in the next five years?
- Who do you consider your customers to be?
- What is your company’s market or target demographic?
- What makes your company better than your competitors?
- In what ways is a career with your company better than one with your competitors?
- What are the areas where your competitors are better than your company?
- What is the biggest challenge facing the company today?
- What new product lines/services have been announced recently?
- How does the company attract sales or develop client relationships?
- From your perspective, what are the strengths and weaknesses of this company?
- What are the company’s strengths and weaknesses compared to its competition?
- What do you consider to be your firm’s most important assets?
- What are the long- and short-term goals of the company?
- What are a few things that really drive results for the company?
- Does the company have a dress code? Is this for everyone or only certain departments?
- How do current employees feel about their jobs and the company?
- Why do you think people leave this company?
- How financially sound is this company?
- What particular computer equipment and software do you use?
- What is the company policy on Internet use?
- What’s your stance on employee involvement in social media?
- Could you describe your company’s management style and the type of employee who fits well with it?
- Can you tell me about company culture?
- What would you say is the most important aspect of your company culture?
- Are there any company-sponsored social events such as a company softball or golf league in place?
- What do employees do in their spare time?
- What are the opportunities for training and career advancement?
- How much paid training do you provide to each employee per year? What kind of training is it? Can employees choose or recommend the training they take?
- How do you ensure that the salary of long-term employees stays competitive, especially in a hot job market?
- What is your policy concerning raises? How regularly do you give raises? Do you consider a yearly increase in salary equal to the local inflation rate to be a raise?
- Do you provide share options, profit sharing, retirement savings contributions, or pension? If so, what are the details of the plan(s)?
- What medical benefits do you provide? Do you cover dental work or eyeglasses? Do you cover health preventative measures such as exercise programs, vitamins, or preventative medical exams?
- Does your company encourage further education?
- How does your company’s tuition reimbursement program work (if there is one)?
- What is company policy regarding working from home?
- Have you cut your staff in the last three years?
- Is your company environmentally conscious? In what ways?
- What kind of partnerships does your organization have with others in the community?
- I’m anxious to get active in the local [industry name] community. Is this something that you encourage?
- Do you like working here?
- Can you please tell me how your career has developed at this organization? Would someone entering the firm today have similar opportunities?
- What tangible and intangible qualities attracted you to the company?
- What excites you about coming into work?
- What do you appreciate the most about your company/organization?
- If you could change one thing about this company, what would you change?
- Who does this position report to? If I am offered the position, can I meet him/her?
- Is my boss’s performance evaluated on how well he/she develops his/her subordinates? On the success of the department?
- Who are the key decision makers that I would need to get along with, and how would you describe each of them?
- Who will be making the hiring decision?
- How often will my immediate supervisor meet with me one on one?
- How would you describe your management style?
- How do you feel about creativity and individuality?
- Can you explain how you let someone take a project and run with it?
- Do most associates achieve their billable hour target? Do most associates exceed that target?
- What are the various ways employees communicate with one another to carry out their work?
- How and by whom will my performance be reviewed? Are there specific criteria upon which I would be evaluated?
- And how frequently is formal and informal review given to new employees?
- Does the company have an internal appeal process involving disciplinary action?
- How do you deal with poorly performing employees?
- How many people work in this office/department?
- With whom will I be working most closely?
- Can you tell me about the key people I would be working with on a daily basis?
- Is there anything I should know about a co-worker in particular?
- Is it possible for me to meet the people I would be working with?
- How is the department (that I would be joining) viewed by the rest of the organization?
- What are the long- and short-term goals of the department?
- What have been the department’s successes in the last couple of years?
- What are your department’s major projects in the coming year?
- How does the department / team I will be joining relate to the overall organization? How does it support the organization’s strategic goals? Is the department a cost or profit center? How is the department perceived politically?
- How are teams assembled? How are team members selected? What are the selection criteria?
- How are your teams structured?
- What kinds of processes are in place to help me work collaboratively?
- How often does my team meet as a group?
- Are teams empowered and self-organizing? Are teams able to choose and tailor a methodology to suit them and their work?
- How much freedom and support is provided to mentor and consult with colleagues, superiors, and customers?
- Have you ever mentored an employee to help achieve their career goals?
- Is there a lot of team/project work?
- In what area could your team use some improvement?
- In what area could your team use a little polishing?
- How do you encourage your employees to keep current with professional developments in the field?
- How do you help ensure that employees are highly motivated?
- How do you plan to provide me with challenging work that makes optimal use of my abilities while providing a supportive environment?
- How do you ensure that each employee is doing quality work?
- How approachable and receptive is management to suggestions and feedback?
- How are resources assigned within the team?
- What opportunities will there be to work with new, interesting technologies?
- What tools and practices are used to manage X or Y?
- What is your process for handling suggestions and ideas from employees? How many suggestions per employee on average were received in the last year? How many were acted on?
- What is involved in moving to another team or changing work assignments?
- How frequently or what portion of the staff is composed of temporary or contract employees?
- Would you like a list of references?
- Is there anything you’d like me to clarify or explain in more detail?
- What additional information can I provide about my qualifications?
- Are there any other questions I can answer for you?
- Is there anything I’ve said today that might hurt my chances of being hired here?
- Is there anything that stands out to you that makes you think I might not be the right fit for this job?
- Do you have any recommendations for how I could improve my interviewing skills?
- What are the next steps in the interview process?
- Who I should follow up with about next steps?
- When can I expect to hear from you?
- How should I follow up?
- If I don’t hear from you by a week from today, may I call you?
- May I contact you if any further questions arise?
What to do:
- dress smartly, look bright and attentive, and speak clearly and confidently. First impressions really do count – studies show that employers make a decision about whether to hire you within the first seven minutes on average
- find out where the venue is beforehand, how to get there and how long it takes
- get your outfit ready the night before
- find out what kind of interview it will be so you can prepare
- examine the person specification and your CV/application form, and think about what type of questions they will ask you
- prepare answers for the main questions – for example, why do you want the job, what are your strengths and weaknesses, what are the main tasks in this job?
- make about three or four points in each answer
- quote real examples of when you’ve used certain skills – just saying you’ve got a skill isn’t enough
- take your time when answering the questions: make sure you understand the question and take your time if you need to think
- sell yourself: no one else is going to! Be positive about yourself and your experiences
- prepare some questions to ask at the end of the interview – use it as an opportunity to find out more about the role and the company. (Don’t ask about money or perks just yet!)
- when discussing salary, know your market worth and start by quoting a little higher than this
- get feedback on your performance, whether you were successful or not
- turn off your mobile phone: treat the interviewers with respect and give them your undivided attention
- keep your answers focused on what you can do for the employer, not what they can do for you
What not to do:
- don’t be late
- don’t swear or use slang words
- don’t slouch in your seat or do anything that makes you look uninterested
- don’t smoke before the interview or during the interview
- don’t lie: the interviewer may see through you. Even if you get the job, your employer can dismiss you if they find out that you have not been honest
- don’t let your nerves show too much; a few nerves are normal but extreme nerves will affect your performance. Use breathing techniques and try to remember that it’s not a life and death situation – there are plenty of jobs out there!
- don’t be arrogant and assume you’ve got the job. Nothing turns off employers more than someone who is disrespectful and over-confident
- don’t discuss controversial topics such as religion, politics and gender relations
- don’t read from notes or your CV — you should be familiar enough with your own history to be able to talk about it unprompted
- don’t criticise former employers or colleagues. Interviewers may mark you down as a troublemaker and a gossip
- don’t argue with the interviewer, no matter what. Remember to keep things positive!