KUALA LUMPUR, May 1 — Private sector employers who contribute more than the mandatory 13 per cent to the Employees Provident Fund (EPF) may be exempted from paying corporate tax.
Malaysian Trade Union Congress chief Datuk Abdul Halim Mansor said the move is among several incentives to be announced by caretaker Prime Minister Datuk Seri Najib Razak at the national Labour Day celebration later today.
“The government will be able to strengthen the private sector workers’ retirement fund by raising the contribution rate of employers which is currently at 13 per cent so as to ensure a comfortable lifestyle when their services end.
“Whichever company that increases its contribution rate can then be exempted from corporate tax as a government incentive, creating a win-win situation,” Abdul Halim was quoted saying by Berita Harian in a report today.
He was also reported saying that the government will likely also be announcing an upwards revision of the minimum wage, as it is due for a revision this year.
Minimum wage is currently at RM1,000 in the peninsula while workers in Sabah, Sarawak and Labuan earn a floor wage of RM920. It was last revised two years ago.
He said workers can also expect better social protection and improvements in worker welfare and affordable housing incentives.
According to Abdul Halim, plans are underway to extend the Social Security Organisation coverage which is currently limited to those earning below RM 4,000 monthly.
“This will be covering additional 6.5 million workers in the private sector,” he was quoted as saying in the same report.
