Employment Act 1995 scope transformation
- Minimum wages. The government recommend a minimum pay of employee in major cities around Malaysia from RM 1,000 to RM 1,200.
- Overtime eligibility. Workers earning less than RM 4,000 per month is eligible for overtime entitlement compared to previous rate of RM 2,000.
- Maternity leaves. Good new to female labor, the leave for maternity will be increase from 60 days to 90 days effective in year 2021.
- New provision. As to cope with discrimination upon religion, ethnicity and gender, a provision will be formed.
- Sexual abuse. The government will modify and improve procedure and protection in handling sexual harassment issues.
Unemployed Graduates Initiative:
The government created an initiative to help graduates who have been unemployed for more than 12 months by introducing incentive to both parties in hiring process.
Graduates will receive RM 500 while employers will receive RM 300 upon secured position applied by the graduates itself. This incentive will be given every month for two years consecutively.
Foreign Workers Replacement:
As to increase productivity of local labour among heavy and cleaning industries, government also offered an amount of incentive for each foreign worker replaced.
Local replacement will receive RM 350 or RM 500 while employers will receive up to RM 250 depending on the sectors involved. This incentive will be given every month for two years consecutively.
Returning Women Workers:
To enhance in capability of gender among Malaysian women between 30-50 years old, a wage incentive will be proposed for returning women workers who had a career break.
Returning women workers will receive RM 500 while employers will receive RM 300 upon employment. This incentive will be given every month for two years consecutively.
In addition, the current income tax exemption for this categories will be extended for another four years until 2023.
Monthly income tax deduction
Leasing parents for enrolled children in registered nurseries and kindergarten:
Parents who have children enrolled in certified and registered nurseries or kindergarten will be given individual tax relief of RM 2,000 compared to previous rate of RM 1,000.
Leasing medical treatment for fertility:
Legal spouse who have undergone a fertility procedure that has been classified as heavy medical treatment will be eligible for tax relief up to RM 6,000 incurred.
Chargeable income exceeds RM 2 million:
A new chargeable income will be introduced for income worth RM 2 million and above at a rate of 30%.
Coming 2020, married couple will have benefits in sharing EPF contribution. Husbands may voluntarily name his 2% EPF employee contribution from his 11% rate under his wife account.
Majority of above-mentioned budget proposal have to undergo legislation to legally effective. However, once amendments announced in Parliament, both employers and employee will have better eye on how Budget 2020 will impact on the industry.