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Tuesday, March 10, 2009

ESP2. Welfare of Retrenched Workers

Employers employed worker retrenched (including VSC) from 1 July 2008 be given double tax deduction on remuneration paid, condition - shall not exceed RM10,000 per months, limit to 12 months per employee. For worker employed from 10 March 2009 to 31 December 2010.

Condition for double deduction is as follow:

  • workers must be Malaysian citizen and residents retrenched from 1.7.2008
  • ther termination has been registered with the Director General of Labour, the Ministry of Human esources - includes those under Voluntary Seperation Scheme (VSS) or Mutual Seperation Scheme
  • employment on full time basis
  • remuneration expenses includes wages, salary and allowances not exceed RM10,00 per month for each worker, limit to maximum 12 months
  • for worker appointed between 10.3.009 and 31.12.2010
  • effective from Year of Assessment 2009

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