PayrollServe Malaysia Latest Statutory Development

Aug 28 2020
PayrollServe
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The Malaysia government in response to the COVID-19 pandemic, has implemented various support measures for individuals and businesses. Read the key updates below: 

Employees Provident Fund (EPF)

1. EPF i-Lestari Withdrawal

1.1 What is i-Lestari Withdrawal?
i-Lestari Withdrawal is a facility intended as a financial relief to assist all EPF members duringthis COVID-19 pandemic period with the objective to provide monthly basic financial needs.

1.2 What is the effective period of i-Lestari Withdrawal facility?
i-Lestari Withdrawal facility starts from 1 April 2020 until 31 March 2021.

1.3 What are the details of i-Lestari Withdrawal facility and how does it work?
a) i-Lestari Withdrawal facility allows EPF members to withdraw from Account 2.
b) Payment of withdrawal will be made on a monthly recurring basis for a maximum of
12 months only or until March 2021.

1.4 How much can be withdrawn under i-Lestari Withdrawal facility?
Permitted amount ranges from a minimum of RM50 to a maximum of RM500 a month,
subject to the amount of savings in Account 2.

1.5 Who can apply for i-Lestari Withdrawal facility?
Malaysian citizens, permanent residents and non-Malaysians EPF members aged 55 years and below with EPF savings in Account 2.

1.6 How to apply for i-Lestari Withdrawal?
Application form is available on EPF website and submit application via:
 Online
 Email to ilestarimohon@epf.govmy
 By post to Kumpulan Wang Simpanan Pekerja, Karung Berkunci No. 220, Jalan Sultan 46720 Petaling Jaya (Pengeluaran i-Lestari)

2. New statutory contribution rate 2020

2.1 What is the current EPF contribution rate for 2020? 7% or 11%?
The new statutory contribution rate for employees is now 7%.

2.2 When does the new contribution rate take effect?
It takes effect from April 2020 to December 2020.

2.3 Does the change apply to everyone?
The new statutory contribution rate applies to employees below 60 year old who are liable for contribution. The statutory contribution rate for employees aged 60 and above will remain unchanged.

2.4 Can I choose to maintain the current employee contribution rate of 11%?
Employees can choose to retain at 11% by completing KWSP 17A (Khas 2020) form and email to VE2020@epf.gov.my with email subject as “VE2020” or submit to the nearest EPF branch.


Social Security Organisation (SOCSO)

1. Perkeso COVID-19 Screening Subsidy

High risk foreign workers can now receive COVID-19 screening test at any clinics that are registered with the Ministry of Health.

1.1 Who are eligible for the screening subsidy?
Workers must be registered Perkeso contributor in the construction industry and health
services within Kuala Lumpur or Selangor.

1.2 How do I apply for the subsidy?
Employer can apply online via Perkeso website and will receive RM150 for each screening done on every foreign worker with effect from 1 June 2020.


Employment Insurance System (EIS)

1. EIS unemployment benefits for termination

1.1 On what conditions does EIS provide unemployment benefits?
EIS grants unemployment benefits if you lost your job regardless if it is voluntary or mandatory separation scheme, redundancy due to business closure affected by the COVID-19 pandemic or even constructive dismissal.

1.2 What are included in the EIS benefits?
EIS benefits include job search allowance, income reduction allowance, training fee subsidies, training allowance and early re-employment allowance.

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