SE Lai CK Alerts 1-2019 – PERKESO (SOCSO) & KWSP (EPF)

Important Circular

Dear Valued Clients and Associates

As part of the Budget 2019 proposal, the following changes in relation to Staffs’ payroll will take effect from 1 January 2019.

Social Protection for Foreign Worker

Employers

Employers who hire foreign workers, incl. expatriates (excl. domestic servants) with valid documents shall:

  • register their employees with Social Security Organisation (SOCSO); and
  • contribute to the Employment Injury Scheme (EI Scheme)

     

    • at contribution rate of 1.25% of the insured monthly wages, capped at RM4,000/month (payable by employer only)
    • in acc. with contribution Table (Second Category – EI Scheme)

Monthly wages  include salaries/wages, overtime payments, commission, service charge, paid annual leave, sick leave, maternity leave, rest day, public holidays, incentive allowances, subsistence and so on, regardless of payment by hourly, daily, weekly, monthly.

Registration

Registration can be made either:

Employer must provide the following documents for registration:

  • valid passport and Special Pass for new foreign workers; or
  • valid passport and Temporary Employment Visit Pass or a valid Employment Pass for existing foreign workers, whichever applicable.

Each registered foreign worker will be assigned a 12 digits FWSS No., to be used for all dealing of their SOCSO matter.

(Any foreign worker who is still covered under the Foreign Workers Compensation Scheme (FWCS) before 1 Jan 2020 is not required to be registered.  If the expiry date of FWCS is in 2019, the registration of foreign workers through SOCSO shall be made one day after the expiry date of FWCS)

Benefits

W.e.f 1 Jan 2019, foreign workers are:

  • eligible for EI Scheme benefits (protection for employees against accident or occupational disease arising out of or in the course of employment), incl. medical benefits, temporary/permanent disablement benefits, constant attendance allowance, dependent’s benefits, and rehabilitation benefits, as well as RM 6,500 for repatriation costs, including funeral expenses. 
  • not eligible for benefits under the Invalidity Scheme (protection for employees who suffer invalidity or death due to any cause unrelated to employment).

Submission

& Payment

The new contribution will be effective for January 2019 salary/wages, i.e. contribution month of Feb 2019 (due on 15 Feb 2019).

Reference

https://www.perkeso.gov.my/index.php/en/perlindungan-perkeso-untuk-pekerja-asing

Phone 1-300-22-8000 or SOCSO’s website www.perkeso.gov.my or nearest SOCSO office.

EPF for Senior Employee (Above 60 years old)

Employers

The minimum EPF contribution rate for employee above 60 years old are as follows:

 

W.e.f 1 Jan 19

Prior to 1 Jan 19

Employer

4.0%

6.0%

Employee

0.0%

5.5%

Submission

& Payment

The new contribution will be effective for January 2019 salary/wages, i.e. contribution month of Feb 2019 (due on 15 Feb 2019).

Reference

Phone 03-89226000 or EPF’s website www.kwsp.gov.my or nearest EPF office.

 

Please do not hesitate to contact the following staffs of our affiliated firm, Associated Secretarial & Management Sdn Bhd (ASM) for further clarification if needed.

ASM Staff

Ext

Email

Ms Nurin

244

nurin.ams@salgroup.com.my

Ms Low Shan Ling

235

shanling.ams@salgroup.com.my

Best regards

22 Jan 2019

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