PCB 2010

New PCB deduction schedule and Explanatory notes available now at IRB website, click http://bit.ly/PCB2010 for 2010 PCB schedule and http://bit.ly/cUciSN for explanatory notes.

The IRB website has also included e-PCB system to ease employer without payroll software to calculate and check PCB. (At launching phase only avail to selected employer, for futher info can contact IRB customer service centre at 1300-88-3010 to activate the account)

The system will store employee information and facilitate PCB submission and payment online thus saving time and cost for employer in PCB compliance.

EPF (Amendment in 2008 and 2009)

1) First Schedule

Persons was are not employees

(3) Domestic servants as defined aforesaid (other than those excepted under paragraph (2)) who have not, in respect of any employment in which they are then engaged, given to the Board and their employers one month's notice in the prescribed form of their intention to be members of the Fund.

(6) Any person who is employed and whose country of domicile is outside Malaysia and who enters and remains temporarily under the authority of any pass issued under the provisions of any written law relating to immigration and who has not given to the Board and his employer one month's notice in the prescribed form of his intention to be a member of the Fund.

(13) Any person who has attained the age of seventy-five years

2) Second Schedule

Definition of "Employer"

3) Third Schedule

EPF Rate (Refer EPF site for details)

Applicable if apply for 11% and persons who have attained the age of fifty-five years.

Summary of content Rate w.e.f 1.2.2008 (11%)

Part A - Employer 12% Employee 11%

(1) The rate of monthly contributions specified in this Part shall apply to—
(a) employees who are Malaysian citizens;
(b) employees who are not Malaysian citizens but are permanent residents
of Malaysia; and
(c) employees who are not Malaysian citizens who have elected to contribute before 1 August 1998.

Part B - Employer RM5 EMployee 11%

(1) The rate of monthly contributions specified in this Part shall apply to employees who are not Malaysian citizens—
(a) who elect to contribute on or after 1 August 1998;
(b) who elect to contribute under paragraph 3 of the First Schedule on or after 1 August 1998; and
(c) who elect to contribute under paragraph 6 of the First Schedule on or after 1 August 2001.

Part C - Employer 6%, Employee 5.5%

(1) The rate of monthly contributions specified in this Part shall apply to—
(a) employees who are Malaysian citizens;
(b) employees who are not Malaysian citizens but are permanent residents of Malaysia; and
(c) employees who are not Malaysian citizens who have elected to contribute before 1 August 1998,
who have attained the age of fifty-five years.

Part D - Employer RM5, Employee 5.5%

(1) The rate of monthly contributions specified in this Part shall apply to employees who are not Malaysian citizens—
(a) who elect to contribute on or after 1 August 1998;
(b) who elect to contribute under paragraph 3 of the First Schedule on or after 1 August 1998; and
(c) who elect to contribute under paragraph 6 of the First Schedule on or after 1 August 2001,
who have attained the age of fifty-five years.

 

Summary of content New rate for 1.1.2009 to 31.12.2010 (8%)

Applicable to new and existing (have not apply for 11%) employee who has not attained the age of fifty-five years.

EMPLOYEES PROVIDENT FUND (AMENDMENT OF THIRD SCHEDULE)
ORDER 2008

Part A - Employer 12% Employee 8%

(1) The rate of monthly contributions specified in this Part shall apply to:

(a) employees who are Malaysian citizens;

(b) employees who are not Malaysian citizens but are permanent residents of Malaysia; and

(c) employees who are not Malaysian citizens who have elected to contribute before 1 August 1998.

Part B - Employer RM5 Employee 8%

(1) The rate of monthly contributions specified in this Part shall apply to employees who are not Malaysian citizens

(a) who elect to contribute on or after 1 August 1998;

(b) who elect to contribute under paragraph 3 of the First Schedule on or after 1 August 1998; and

(c) who elect to contribute under paragraph 6 of the First Schedule on or after 1 August 2001.

WAGES for SOCSO and EPF

 

Socso

including overtime, commission, service charge, paid annual leave, sickness, maternity, rest day, public holiday, incentives, subsistence, housing and others. All payments calculated either hourly, daily, weekly, monthly or by task are considered wage.

EPF
Fees/wages meant all support in terms of monetary to be paid to the employee under a service contract or apprenticeship either agreed to be paid monthly, weekly, daily and others including bonus, commission or allowance which an employer has to pay its employees.

Payments that do not require deduction for EPF contribution are:

• Service charge
• Overtime payment
• Gratuity, which refers to, any payment paid by an employer to an employee as termination of service or voluntary separation scheme to acknowledge the services of the employee.
• Director fees
• Retirement benefits, which means, any payment paid by an employer to an employee for compulsory or optional retirement or for health reasons as stated under the employees contract of service
• Retrenchment benefits, temporary or permanent termination of employment
• Any traveling allowance or the value of any traveling concession
• Any other remuneration or payment exempted by the Minister

(Source: FAQ of EPF & SOCSO site)