(BridgeKnowle) Year End Checklist for HR - Companion WorkBook

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YEAR-END CHECKLIST FOR HR DEPARTMENTS[Complete Guide to Managing Year End HR Matters]

Kenny Ong

WORKBOOK

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Our Vision is to become and be recognised as a leading distributor in the industry.

This vision can only be realised by building on quality products, quality service and management / technical know-how and creativity. To do so, we need to build an organisation that is manned by people who are highly committed, motivate, competent, responsible, customer oriented and results oriented.

Our Human Resource Management Strategy shall be guided by three

key elements: -

Human Resource is managed in such a way that is adds high value to the organisation - employee performance is productive - the organisation is lean, adaptable and forward looking

Employees have a strong sense of purpose. They feel that they are an integral part of the ABC Company Sdn Bhd team. They have interesting and professionally challenging jobs and they want to improve individual skills and capabilities to match career opportunities.

All employees are accountable for results

We believe that in order to realise our Human Resource Management Strategy

Human Resource Management must be the responsibility of line managers

Capability growth of our employees must be integrated with business management

Performance development, performance recognition and reward management would be the core processes of ABC's human resource management

We believe that people work better if

They work to accomplish a purpose

They have the competencies to fulfil the job roles

They have the right tools, system and techniques

They have the resources available

They have the knowledge of their progress and results

They have guidance, coaching and counseling

We wish you a successful career with ABC Company Sdn Bhd Human Resource Manager

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Item Section Foreword 1

Introduction 2

Vision/Mission 3

Corporate Values 4

Core Competencies 5

Organisation Charts 6

Your Career in ABC Company Sdn Bhd 7

Your Role and Accountability 8

Rest & Recreation 9

Leave 10

Overtime 11

Reward and Compensation Principles 12

Benefits & Allowances 13

Retirement / EPF 14

Medical and Health Care 15

Staff Insurance 16

Perquisites 17

Quality of Work Life 18

Principles of Performance Appraisal 19

Your Training & Development 20

Succession Planning & Career Development 21

Code of Ethics Professional Accountability 22

The Employment Contract 23

Employment Discipline 24

Employment Grievance 25

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SECTION 1 Page 1 of 1

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Issued by: Human Resource Department

Issue Date: April 2000

Foreword by the Managing Director

Welcome to ABC Company Sdn Bhd ! You are important to us, therefore this Career Guide is designed to provide you with relevant information and guidelines in line with the people management philosophy of the company. This Career Guide should enable you to feel comfortable with the company's operating principles and enable you to take accountability for your personal growth and advancement.

It is our desire to provide you with a motivating working environment so that you are

successful in your career aspirations

We look forward to your contribution as a team member of ABC Company Sdn Bhd.

Together ABC Company Sdn Bhd BOLEH!!

With best regards

____________________

Managing Director

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The objective of this Handbook is to state the terms and

conditions of employment of the ABC Company Sdn Bhd. For the

purpose of this Handbook, the above companies are here-in-after

refer to as "The Company". The Company shall extend the terms

of this Handbook to only confirmed employees. The company shall introduce, modify, amend or annul

any terms and conditions of employment at any time during its operations provided that such changes

(shall not be in direct) conflict with the provisions of the Malaysian Labour Legislation. Employees affected

by such changes shall be duly informed at least two (2) weeks before any implementation. Any person so

affected by the terms and conditions of employment stated in this Handbook may seek clarifications or

explanations from the respective Head of Dept or the Human Resource Dept.

This handbook shall supersede all other terms and conditions of employment currently practised in the

Company.

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Please State your Vision here.

VISION

Please State your Mission

here.

MISSION

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We value our people Our success depends on each of us. We WORK TOGETHER in a

way that recognises and takes advantage of this.

Our commitment to understanding and MEETING THE NEEDS OF OUR CUSTOMERS is key competitive advantage. By doing so, we

build enduring relationship

We value our customers

We are part t of our community where we operate and we are a citizen of these communities. Therefore, we conduct our business in

an ETHICAL MANNER.

We value our place in the community where we operate

We value our business partner WE RELY ON MANY PARTNERS. In our business, suppliers, service providers and joint venture partners.

We value our shareholders We are focussed to provide SUPERIOR AND SUSTAINABLE WEALTH FOR OUR SHAREHOLDERS. We treat all of them with fairness and equity

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Actively seeks to improve others' skills and talents by providing constructive feedback, coaching, training opportunities, and assignments, which challenge their abilities.

Believes in own ability to accomplish a task and select an effective approach to solving the problem. Copes in increasingly challenging circumstances and demonstrates confidence in own initiatives. Impresses, influences and convince others in a way that results in acceptance and agreement

Desires to help the customer. Concerned to provide a prompt, efficient and personalised service to clients; focuses effort on discovering and meeting the internal and external customer's needs.

Successfully adapts to changing demands, conditions and people. Understands and

appreciates difference and opposing perspectives, is receptive to change and adapts own approach

Demonstrates a broad-based view of issues, events and activities and a perception of their longer-term impact or wider implications. Recognises that implications are wider than his or her own geography, business unit or function.

Building Potentials and Talents

Confidence

Customer Commitment

Flexibility

Global View

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Meets or exceeds standards of excellence, which may be own past performance, an objective measure, others performance, challenging goals, or innovation. Commits self to work hard towards goals and exceed targets. Shows enthusiasm, drive and career commitment.

Implements plans to achieve results and monitors progress. Shows a clear sense of direction, meets deadlines and avoid crises. Confronts issues, influences and enlists the support of key players.

Analyses issues and breaks them down into their component parts. Make comparisons of different aspects and identifies trends and patterns within the problem. Makes systematic and rational judgements based on relevant information.

Works to build and maintain useful relationships and networks of contacts both inside

and outside the Board. Attuned to internal politics and alert to changing dynamics within the organisation.

Creates a positive environment, which encourages co-operation. Inspires enthusiasm, co-operation and commitment to achieve the goals of the team/organisation. Creates an environment where the experiences and views of all team members are valued and encouraged.

Works co-operatively with others, to be part of a team. Actively supports team decisions and carries out commitments. Interacts in a sensitive, supportive and effective manner. Shares information, co-operates, respects and works well with others.

Goals and Achievements

Planning and Implementation

Problem Solving & Analysis

Relationship Building

Team Leadership

Teamwork & Co-operation

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Managing

Director

Marketing

Manager

Senior

Sales Mgr

Operations

Manager

Business

Manager

Finance

Manager

Personnel &

Admin Mgr

Marketing

Team

Sales

Team

Operations

Team

Food Svc

Team

Finance

Team

Personnel

Team

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A career is a sequence of work-related experiences, which enable a person to apply his or her competency in producing some desired results. The several career stages in our life may include: -

1 2 3

Images from TV, movies and family

Introduction to 1st job

Reality shock

New opportunities

Sorting out work life

Finding a comfortable balance between work and home; friends and professionals

4 5 6

New senses of growth

New opportunity to be better

A solid citizen

A seasoned professional or conceptual leader

Learning to accept a reduced role

Readjusting the balance between family, friends and work

The Company’s Career Development Objectives are: - 1. To improve The Company’s performance by enhancing employee competency at every

career stage. 2. To “grow” and enhance employee competencies to match The Company’s current and

“future needs”. 3. To reduce “obsolescence” in traditional jobs by creating new employment

opportunities using new skills. 4. To encourage retention of professionals by providing professional development

opportunities.

Exploratory

Stage

Early

Experiences

Re-establishing

Mid Career

Late Career

Decline

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Your Role in Career Advancement (How you can advance your career in The Company)

In order to take advantage of the career prospects in The Company, you must be active in taking the following steps: -

1. Conduct a self-appraisal - what are your current capabilities, strengths and areas for improvement?

2. What is your goal direction? (tentative though it may be )

- do you want to be a seasoned and recognised specialist in any field ? OR - do you want to manage your own business (ultimately)

3. Establish a time frame, consult your supervisor and others who may establish a reasonable time segment for you.

An example of a competency growth plan: -

Executive

3 years

Professional (Asst. Mgr.)

3 years

Senior Professional

5 years

Seasoned Professional

Age 24 27 30 35

Competencies to be acquired

Technical skills

Initiative Team Leadership Skills

Conceptual Thinking Capability

Planning and organising work

Analytical Thinking

Interpersonal Influence Skills

Mentoring Skills

Interpersonal Influence Skills

Tenacity Developing Others

Results Orientation

Self-managed career progression can be achieved by you taking an active role in seeking and acquiring these critical competencies.

You may consult and seek assistance from your supervisor, other senior professionals, the human resource manager or you may even consult external recognised experts for guidance.

The career progression may not proceed as you have planned with respect to time. You may move ‘faster’ or ‘slower’, but it is critical that you ‘grow’ in the manner planned.

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The Company’s Competency Based Career Levels Show below is a model of the general and specific competencies of the career levels of executives and professionals.

Typical Competencies Critical

Career Title General Specific Output

Seasoned

Professional

o Assignments are subject to broad goals and broad policies only

o Member of Management Team involved in determining key results to be achieved by the organisation both short term and strategic results

Multi business strategic management capability comprehensive integration of large but relatively homogenous business units

Management of conceptual direction and achievement of goals and business objectives within very broad guidelines

o Accountable for policy development and implementation at operating level

o Achievement of specific goals and objectives are critical

o Implements policies to achieve corporate planned results

Conceptual leader. Able to develops business alternatives Ability to develop and appraise conceptual alternatives

Management of long term business results and strategic position of the business unit within general guidelines

Senior

Professional

o Implements specific policies based on principles set by business unit head.

o Guided by general practice of the field and study on principles

o Review and recommend policy changes

Able to develop conceptual alternatives to deliver project results

Achievement of business objectives and goals within corporate guidelines

o Achievement of results is more important than compliance with internal procedures

Able to determine process and systems alternatives to deliver project sub-objectives Able to conduct process and systems variation with occasional guidance

Delivery of sub-objectives and results - only occasional conceptual guidance Delivery of results and achievements of sub-objectives - under policies guidance

Professional

o Implement systems and processes based on set principles and objectives to produce designed results.

o Discretion on basic principles and process is allowed in order to achieve results

Ability to determine process and systems alternatives to deliver sub-objectives within defined policy

Achievement of sub-objective and delivery of results within policies set Delivery of sub-objectives and results within specific policies on freedom to act

Delivery of sub-objectives and results - subject to supervisory review

Executive

o Implement systems and processes based on set standards specifications and objectives.

o Discretion to deviate is narrow and subject to review of progress and results.

Conduct work based on tasks assigned and keep to prescribed standards and work routine.

Take action for results within well defined processes and procedures on freedom to act. Results are reviewed by superior

o Usually a large part of the job involves scheduling and managing activities to achieve standard output on time.

Learning and understanding basic work process and procedures

deliver results within specific processes and procedures on freedom to act. Results are closely reviewed by superior

o Conduct work based on assigned tasks within prescribed standards

o Progress and results subject to close review.

Assist others in work assignments under close supervision

Work within well defined processes and procedures on freedom to act. Closely supervised by superior

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Your Role and Accountability


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1. Your Role and Accountability

As a member of the company, you need to understand your role and the results expected of you.

All staff must have a copy of the Key Results expected of their position. Make sure you have a copy of the Key Results for your position

The company’s human resource process and systems will be explained in an induction program organised for you.

It will help you build relationships, understand norms, establish and develop a network of contacts relevant to your role. You will begin to build a relationship with the company.

Always contact your team leader or the Human Resource Manager for further clarification. You may also contact your friends in your team or section for assistance - but remember they can interpret matters in a different manner depending on their own experience.

The following is a format of a results description:

Key Results Major Supporting Actions Performance

Indicators1. Achieve targeted

production

volume

By monitoring production performance and taking corrective

actions

By analysing production downtime and introducing

improvements

By thorough preparation for introduction and

implementation of new models and variants

1. Timely production

targets

2. Productivity ratios

3. Downtime

4. Implementation

schedule

2. Achieve product

quality targets

By reviewing quality performance results and identifying non

conformance and undertaking corrective actions

By analysing customer feedback and taking corrective actions

By undertaking on-line and off-line continuous quality

improvement programs and activities

By undertaking education and re-education programs

1. Quality index

2. Defect occurrence

3. Non-conformance to

established standards

4. Demerit points

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Rest & Recreation (Work and Holiday)


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1.0 Working Days and Hours

Introduction

This section covers the official working hours of the employee.

1.1 All employees except those from the Production and QC Dept shall work 5 days a week of thirty-seven and half (37½) hours (excluding meal breaks) per week

Monday - Friday 8.30 am to 5.00 pm Lunch 1.00 pm to 2.00 pm

The Production, Maintenance and QC staff are required to work on shift.

1.2 The Company may vary this arrangement depending on operational needs of particular unit and section in order to provide better service to our customers.

1.3 The Company may require you to work on shifts where and when it is necessary in order to be more effective.

1.4 The Sales and Marketing personnel may be required to work at different times when there are company's promotional activities taking place.

1.5 You shall also work on a public holiday or a rest day, or work overtime and attend to emergency work in excess of the normal work hours on any given day when requested by your superior. This is the nature of being dedicated and committed to the mission of The Company.

2.0 Public Holidays

The company shall grant all its employees paid holidays on all public holidays gazetted by the Malaysia Government. Where a state in Malaysia gazettes certain specified days as state holidays, the employees based in that State are eligible for such gazetted holidays.

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Leave


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Introduction This section covers the entitlement, application and scheduling of the following types of leave: - a) Annual Leave b) Medical Leave c) Marriage Leave d) Maternity Leave e) Paternity Leave f) Examination Leave g) Compassionate Leave 3.0 Annual Leave

3.1 All employees shall be eligible for annual leave after completion of one (1) year of continuous service.

3.2 The Company may at its discretion grant proportionate annual leave to confirmed

staff in cases where their service with The Company is less than one (1) year.

3.3 Eligibility for annual leave shall be as follows:-

Years of Service

Days

Executive Non-Executive

1st to 5th year 6th to 10th year 11th year & above

16 18 21

14 16 18

3.4 Rest days and gazetted public holidays shall not be included when computing the leave entitlement.

3.5 The Company may call you back to work and cancel the leave if the nature of the

situation requires you to be back on duty.

3.6 When due to exigencies of the service, leave application is not granted or leave when granted is cancelled, then the leave which cannot be taken or cancelled shall be carried forward and taken when one can be spared during the following year.

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3.7 Employees are encouraged to take their leave for the respective year. Leave should only be carried forward when absolutely necessary and only upon written approval of the manager / supervisor.

3.8 During the first and last years of service, and if you work less than a complete

calendar year, your leave entitlement will be calculated on a pro rate basis.

3.9 An employee requesting for annual leave has to submit the Leave Application Card to his Head of Department at least seven (7) working days prior to the date of the planned leave.

3.10 On approval, the employee will return the card to the Human Resource Dept for

safe-keeping and updating of records. If the leave is not approved, the card will be returned to the Human Resource Dept with reason(s) provided.

3.11 In the case of work exigencies, an employee who is on leave may be called back to

his place of work. As soon as the employee is back for duty, his Head of Dept will notify the Human Resource Dept of the leave cancellation in writing. Human Resource Dept will amend the employee's leave record accordingly.

4.0 Medical Leave

4.1 An employee is eligible to paid medical leave up to fourteen (14) days in each calendar year if the said employee is not suffering from a prolonged serious illness and is not required to be hospitalised or confined to bed, medical leave eligibility is as follows:-

Years of service No of days

Less than 2 years 2 years but less than 5 years 5 years and above

14 18 22

4.2 An employee who is advised to go on medical leave by a doctor from the Company's Panel of Clinics (Exhibit 3A) has to inform Company within 24 hours. When the employee returns from medical leave, he is required to submit his Medical Leave Certificate to his Head of Dept for verification before submission to Human Resource Dept.

4.3 For non-emergency cases, Medical Leave Certificate obtained from a Non-Panel

Clinic may be considered as no pay leave.

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4.4 Human Resource Dept will inform employees who have fully utilised their medical

leave entitlement for the year. Human Resource Dept may then proceed to do the following:-

a) Deduct the excess leave from their annual leave entitlement, or b) Consider the access days taken as no pay leave, if the annual leave has been

exhausted. 4.5 The employee is required to complete the Leave Application Card for cases in

4.4.a). 4.6 Application for hospitalisation leave shall be made in writing to the Human

Resource Dept through the Head of Dept. All applications must be accompanied by a recommendation letter from the attending doctor/specialist.

4.7 If the employee is still not fit for work at the end of the hospitalisation leave,

Human Resource Dept may consider a medical boarding out. 5.0 Hospitalisation Leave

5.1 An employee who has been with the Company for 10 years or more and suffering from serious illness, or any other disease that requires prolonged absence from work, as certified by the approved doctor shall be granted sick leave with full pay up to a maximum three (3) consecutive months provided he is hospitalised. Those with less than 10 years' service will only be entitled to a maximum of two (2) consecutive months of sick leave.

5.2 At the expiry of the sick leave mentioned in Clause 3.3.1 above, an employee may

be medically boarded out, provided always that The Company seeks the advice of an approved doctor.

6.0 Maternity Leave

6.1 All female staff shall be entitled to fully-paid maternity leave of sixty (60) consecutive days in respect of the first five (5) confinements while under the employment of The Company. Non-pay leave will be granted by subsequent confinements.

6.2 Leave of absence due to any illness or miscarriage during the first 28 days will be

considered as normal sick leave.

6.3 A female employee applying for maternity leave shall submit the Leave Application Card together with the doctor's certification of the expected delivery date to Human Resource Dept through her Head of Dept by the 7th month of her pregnancy.

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6.4 The employee shall update Human Resource Dept and the Head of Dept on any

changes in the above.

7.0 Marriage Leave

7.1 Three (3) working days in continuous sequence to the day of marriage for a confirmed employee on the occasion of his/her own and first marriage.

7.2 An employee shall complete and submit Leave Application Card together with

Marriage Certificate and Invitation Card (if any) to Human Resource Dept through their Head of Dept at least seven (7) working days prior to the date of the planned leave.

7.3 The employee will be notified if the leaves are approved and the Card shall be

returned to the Human Resource Dept for updating of records.

8.0 Paternity Leave

8.1 One working day in the event of the birth of his legal child. 8.2 Application shall be made by completing the Leave Application Card.

8.3 If circumstances do not allow the employee enough time to apply for leave under

normal procedures, the employee shall inform his immediate supervisor at the earliest opportunity.

8.4 Upon his return from such leave, the employee shall complete the Leave

Application Card and submit it together with relevant supporting documents to his Head of Dept for approval. The card is to be submitted to Human Resource Dept for updating purposes.

9.0 Compassionate Leave

9.1 Three (3) working days in the event of the death of immediate family members such as spouse, son, daughter, mother, father, mother-in-law or father-in-law.

9.2 One working day in the event of the death of close relatives such as grandfather,

grandmother, brother or sister.

9.3 Application shall be made by completing the Leave Application Card.

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9.4 If circumstances do not allow the employee enough time to apply for leave under normal procedures, the employee shall inform his immediate supervisor at the earliest opportunity.

9.5 Upon his return from such leave, the employee shall complete the Leave

Application Card and submit it together with relevant supporting documents to his Head of Dept for approval. The card is to be submitted to Human Resource Dept for updating purposes.

10. Examination Leave

10.1 A confirmed employee who is nominated by The Company to attend courses may be granted examination leave maximum three (3) working days in a calendar year.

10.2 Application shall be made by completing the Leave Application Card with

supporting document to Human Resource Dept through Head of Dept at least seven (7) working days prior to the date of the planned leave.

10.3 This applies only to the days on which the exam is held and only when the time of

the exam falls within the normal working hours.

10.4 The employee will be notified if the leaves are approved and the Card shall be returned to the Human Resource Dept for updating of records.

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Overtime


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1.0 Overtime

1.1 Overtime is defined as time worked in excess of normal working hours during normal workdays, or time worked on Saturdays. Non-supervisory employees may be required by management to work overtime. They are then entitled to overtime pay provided prior directive has been given by the appropriate Head of Dept for such work to be done on paid overtime.

1.2 Overtime rates are as follows:-

a) Normal Workday / Saturday b) Rest Day (Sunday) & Gazetted Public

Holiday

1.5 x Normal Hourly Rate

- Not in excess of Normal Hours of work

- In excess of normal hours of work



Normal Hourly Rate = Basic Pay x 13

weeks x 37½ hours 2.0 Computation of Overtime

2.1 All fraction of an overtime hour shall be rounded off to the nearest 1/4 of an hour. 2.2 Meal breaks taken during overtime are not included in the period of overtime.

2.3 Maximum overtime allowed per employee per month is 104 hours.

3.0 Application

An eligible employee who has worked overtime shall be required to complete the Overtime Claim Form (Exhibit 4A). The employee shall fill in his Name, Employee Number, Department, the date(s) and hours of overtime worked in the Form. All overtime work done shall be checked by the respective immediate superior and approved by the respective Head of Dept.

4.0 Processing

Completed Overtime Claim Forms shall be submitted to the Human Resources Dept by the 10th of each month. Late submission of overtime forms will be processed in the following month.

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Reward and Compensation Principles


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1.0 Reward and Compensation

1.1 The Company management is committed to offering pay and benefits that are fair

and competitive in order to recruit, retain and motivate highly productive talents who will continue to grow

1.2 The guiding principles are :-

1.2.1 Individual performance is rewarded according to achievement of results expected

1.2.2 Career levels are designed to reflect competencies necessary to perform at different levels. The salary range set for each career level is determined to a large extent by market practice

1.2.3 Outstanding achievement is further rewarded to encourage superior performance

1.3 The Company’s compensation policy is to pay salaries which reward each employee

in proportion to the value of the career level compared to established job levels which are competitive.

1.4 The Company’s pay philosophy is a combination of pay for performance and pay for competencies.

1.5 The individual can directly influence his or her total earnings through performance (results) and by self directed learning all the time

2.0 In addition to being externally competitive, The Company salary system is designed to be internally consistent.

These practices are designed to attract and retain

competent employees, and to motivate employees so

that they achieve high personal growth.

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3.0 Job Evaluation

3.1 Career levels increase with respect to responsibilities and accountabilities. 3.2 The term Job Evaluation refers to the process of measuring the value of each

career position with respect to their relative value to The Company.

3.3 The process of Job Evaluation begins with the Position Description which describes the basic purpose and job responsibilities of the position (not the individual) and covers the following :

3.3.1 Results Creation

3.3.1.1 Scope, accountability, level and degree of responsibility, reporting relationships and overall impact of the position on end results

3.3.2 Problem Solving

3.3.2.1 Level and complexity of problem solving required to perform standard results

3.3.3 Competencies

3.3.3.1 Special qualifications, experience, skills and competencies, technical and professional proficiencies

3.4 Managers and supervisors usually assume responsibility and accountability for

departments where career levels are already analysed, written and evaluated. However, many career levels change over time and new career levels may be created. When such changes occur, the Manager or supervisor should ensure that the Position Description is written or rewritten to capture the changes and, have them evaluated or re-evaluated.

3.5 Care must be taken to determine the requirements of the career level, not the

qualification of the individual.

3.6 Pay for Performance drives results orientation whilst pay for competencies encourages development.

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3.7 Pay for Performance is the recognition and reward for results.

3.7.1 The pay for Performance principles encourages initiative, creativity, continuous improvement and long term performance

3.7.2 Performance is measured by comparing an employee’s behaviour and

results against performance plans.

3.7.3 This process creates a results culture and motivates competent employees to contribute to their highest level of potential.

4.0 Performance plans include :

4.1 Selected competencies and behaviours that describe the manner in which results are achieved

4.2 Measures and standards that define the level of performance expected

4.3 Objectives that set measurable goals for the employee to achieve

4.4 Performance is recognised in the following salary actions :

4.4.1 Merit Increase which recognises and rewards productivity and results 4.4.2 Promotional Increase which rewards an employee’s assumption of greater

responsibilities and accountabilities.

4.4.3 Bonus which is discretionary may be paid according to both individual and company performance

5.0 Summary

5.1 The success of The Company’s Compensation System depends on how well it is understood and administered.

5.2 Good communication between the employee and his / her Manager / Supervisor is

essential. That is why we have published this guide which we hope will give you a better understanding of the system.

5.3 Each Manager / Supervisor must be able to explain the process involved and the

philosophy of The Company’s Compensation System.

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6.0 Salary Ranges

6.1 The salary ranges of career levels are confidential and should be treated

accordingly

7.0 Bonus

7.1 Payment of bonus shall be paid at the sole discretion of the Company. 7.2 Payment of bonus if declared by The Company shall be based on The Company’s

performance and individual performance.

7.3 Bonus shall be payable to confirmed employees who are in the services of The Company at the time of payment.

7.4 All confirmed staff shall be eligible for a 13th month's pay and shall be payable

during the month of December. However, for the first year of service, an eligible employee who has completed less than 12 months continuous service with the Company will be eligible for one-twelfth (1/12) of the 13th month's pay for each completed month of service.

8.0 Uniforms

8.1 The Company will provide uniforms to the following categories of staff. The design

and type of uniform shall be determined by the Company.

Office Cleaners - 3 sets to be provided yearly. Drivers/Attendants - Maximum RM60 per pair of pants T/Shirt Maximum RM100 per pair of shoes yearly

8.2 All uniforms staff provided with such uniforms shall wear such uniforms at all times

during working hours. Failure to wear such uniforms shall be construed an at of misconduct and the staff shall be liable to disciplinary action by the Company.

8.3 All staff required to wear uniforms shall be given 3 sets of uniforms on confirmation

in employment. Thereafter, uniforms will be replaced as and when necessary up to a maximum of 3 sets per calendar year starting 1st January of the year following the year in which the staff was confirmed.

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Benefits & Allowances


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1.0 Staff Loan

1.1 Introduction

This section covers the eligibility, processing and administration of loans listed below: - 1.1.1 Car Loan 1.1.2 Computer Loan

Human Resource Dept will ensure that the total monthly salary deduction inclusive of the loan applied for shall not exceed 1/3 of the employee's nett salary.

1.1.1 Car Loan

1.1.1.1 Eligibility

All confirmed staff (Executives/Managers) from the Sales and Marketing Departments are eligible to apply for this loan.The maximum loan amount is 80% of the value of the car or RM50,000.00 whichever is lower.The repayment period is 5 years with an interest of 2% per annum. Employees who are provided with Company cars are not eligible to apply. Application from the confirmed Executives/Managers from the other departments will be considered on case by case basis.

1.1.1.2 Application Procedure

a) An eligible employee shall complete and submit to Human Resource Dept an Application for Car Loan form (Exhibit 6A). The employee should include a copy of the quotation (for new car) or a valuation letter (for used car).Human Resource Dept will check and certify the application before seeking approval from the Managing Director

b) Upon approval by the Managing Director, the Human Resource Dept shall

inform the employee and the Finance Dept to release the cheque made payable to the vendor through the employee.

c) A schedule of repayment will be signed by the employee for repayment of

loan to be made through salary deductions.

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d) Human Resource Dept shall keep a copy of the following documents once

the car has been registered:-

i) Registration Card to be registered under the employee's name ii) Insurance Cover Note

e) The employee shall clear the balance of the loan within seven (7) days

upon the employee's resignation/termination from the company.

f) If the application is not approved, Human Resource Dept shall inform the employee concerned in writing.

1.1.1.3 Withdrawal of Benefit

The loan will be withdrawn when:- i) The Employee resigns or whose services are terminated by the Company. ii) The loan has been repaid in full. iii) The employee sells the car.

1.1.2 Computer Loan

All confirmed staff (Supervisors/Executives/Managers) whose nature of work require the use of computer are eligible to apply. The maximum loan amount is 70% of the value of the computer or RM5,000.00 for laptop or RM3,000.00 for desk top, whichever is lower. The repayment period is for 2 years interest free.

1.1.2.1 Application Procedure

a) An employee applying for the Computer Loan must complete the Application for Computer Loan Form (Exhibit 6B) together with the quotation from a recognised vendor. These shall then be submitted to Human Resource Dept through their respective Head of Dept.

b) Human Resource Dept shall check and certify the application before seeking the approval from the Managing Director.

c) Upon approval by the appropriate authority, Human Resource Dept shall inform the employee and the Finance Dept to release the cheque made payable to the vendor through the employee.

d) The Human Resource Dept shall obtain the original receipt from the employee and forward it to the Finance Dept.

Page 28 of 100


Revision No: 0



e) A schedule of repayment will be signed by the employee for repayment of

loan to be made through salary deductions.

f) The computer purchased shall be under the employee's name.

g) Salary deductions will commence one (1) month after the loan is released.

h) The employee shall clear the balance of the loan within seven (7) days upon the employee's resignation/termination from the Company.

1.1.2.2 Withdrawal of Benefit

The loan shall be withdrawn upon the employee's resignation/termination from the Company.

2.0 Transport Allowance

Transport Allowance will be paid as follows:-

Head of Department - RM400/month Other Managers/Executives/Supervisors - RM300/month

The transport allowance will only be paid when a company car is not provided. For those who are not entitled to transport allowance, car mileage at RM0.35/km can be claimed for travel on company business.

3.0 Shift Allowance

Non-Supervisory employees who are required to work shift shall be paid a shift allowance at the following rates:-

a) Full rotating shift system: First shift - Nil (7.00am - 3.00pm)

b) Second Shift - RM2.00 p/day (3.00pm - 11.00pm)

c) Third Shift - RM5.00 p/day (11.00pm - 7.00am)

Alternating shift system: a) First Shift - Nil

(7.00am - 7.00pm) c) Second Shift - RM5.00 p/day

(7.00pm - 7.00am) The actual time schedule for each shift shall be determined by the company from time to time and this will be posted on the Notice Board.

Page 29 of 100

Retirement / EPF


Revision No: 0



1.0 Retirement Age

The Company's policy is to recruit employees who are 16 years of age and above and the retirement age for all staff shall be:-

1.1 Male 55 years 1.2 Female 55 years

Reemployment of an employee after his retirement shall be at the discretion of The Company provided the employee is certified medically fit.

2.0 EPF Contribution

2.1 The company and the employee will be jointly liable to contribute to this fund as per statutory rates set by EPF.

2.2 With effect from 1 June 1999, the company will contribute 15% and the employee 11% to this fund.

Page 30 of 100

Medical and Health Care


Revision No: 0



1.0 Introduction

This section covers medical coverage entitlement for Group Hospitalisation and Surgical Policy, the list of the Company's Panel of Clinics/Hospitals, medical examination, medical treatment by Company's and non-Company's Panel of Clinics, specialist treatment and hospitalisation, reimbursement of medical bills and the maintenance of medical records.

2.0 Staff Entitlement

2.1 Schedule of Benefits (Maximum Per Any One Disability)

Type of Benefit Plan 5 Plan 6 Plan 7 Plan 8 1. Daily Room & Board

(Max. 60 days for Private Hospitals) (Max. 75 days for Govnt. Hospitals)

400 250 200 150

2. Maximum Limit Without Surgery 10,000 7000 5,500 4,200

3. Maximum Limit With Surgery 25,000 13800 10,000 7,000

Note Plan 5 - Senior Managers Plan 6 - Managers Plan 7 - Executives/Supervisors Plan 8 - Others

3.0 List of Company's Panel of Clinics/Hospitals

3.1 Human Resource Dept shall update the List of Panel of Clinics/Hospitals when necessary including all particulars of the clinic/hospital such as the clinic/hospital names, address, telephone number and operating hours.

3.2 Human Resource Dept shall inform all employees of any new Panel of

Clinics/Hospitals through memo on the notice board. 4.0 Medical Examination

4.1 All successful candidates are required to undergo a pre-employment medical examination before the issuance of his Letter of Appointment. Human Resource Dept shall issue a letter to authorise the medical examination (Exhibit 8A).

4.2 The doctor performing the medical examination shall submit the medical report to

Human Resource Dept.

Page 31 of 100


Revision No: 0



4.3 Human Resource Dept shall review the medical report to determine whether the

employee is medically fit for employment. 4.4 The medical examination report received shall be recorded by Human Resource

Dept and the report filed in the respective employee's Personal File.

4.5 All Managers are entitled for a full medical check-up every 3 years. 5.0 Medical Treatment by Panel of Doctors

5.1 An employee seeking medical treatment at a Company's clinic shall be required to produce the authorised Medical Card or the Clinic's Medical Chit. If the employee is without the card or the clinic's medical chit, he shall be required to pay for the treatment when requested by the clinic.

5.2 The employee shall be required to complete Part A of the Medical Form (Exhibit 8B)

which is available at the clinic.

5.3 After the medical treatment, the consulting doctor shall complete and sign Part B of the Medical Form. The clinic has to submit a copy of the Medical Form together with the invoices to the Company.

6.0 Specialist Treatment & Hospitalisation

6.1 Any employee seeking specialist treatment or hospitalisation shall obtain a Letter of Referral from the company's Panel of Clinics, except in the case of an emergency.

6.2 The Letter of Referral shall be presented to Human Resource Dept for the issuance

of a Letter of Guarantee.

6.3 Human Resource Dept shall issue a Letter of Guarantee (Exhibit 8C) to the referred Government/Private Hospital. The Letter of Guarantee shall be issued together with the Insurance Claim Form, if any, for Hospitalisation and Treatment. The Insurance Claim Form, if any, shall be completed by the attending physician.

6.4 The completed Insurance Claim Form shall be submitted to Human Resource Dept

who will initiate the insurance claims. 7.0 Medical Treatment by Non-Panel Clinics

7.1 In the case of an emergency where the services of a doctor from the Company's Panel of Clinics is not available, an employee may seek medical treatment from any registered medical practitioner. The employee will be required to pay for the medical treatment bills and claim reimbursement from the Company.

Page 32 of 100


Revision No: 0



7.2 In exceptional cases where after a reasonable period of treatment by the

Company’s Panel of Clinics the employee's health has not shown any improvement, the Company may allow the employee to consult a specific non-panel registered medical practitioner/specialist.

7.3 For the above purposes in subsection 12.6.2, the employee shall be required to provide full details and reasons for the request to Human Resource Dept for approval.

8 Exclusions of the Policy

The company shall not pay for the cost of the following:- 8.2 Any hospitalisation confinement or surgical operation which has not been previously

recommended by a legally licensed physician or surgeon appointed by the Company;

8.3 Medical or surgical or other appliances, including spectacles or glasses;

8.4 Suicide or attempted suicide, while sane or insane or intentionally self-inflicted injuries;

8.5 Direct participation in riot or civil commotion; insurrection or way or act of war of fulltime service in any of the armed forces.

8.6 Private flying except as a passenger in any commercial or chartered airline licensed to carry passengers.

8.7 Any dental work, dental treatment, eye examinations, hearing aids or the fitting of any thereof, or cosmetic surgery, plastic surgery.

8.8 Rest cure, veneral disease, AIDS, cancer, sterilisation, nervous or mental diseases or disorders.

8.9 Any expenses relating to pregnancy including childbirth, caesarean operation, abortion, miscarriage, whether natural or accidental and all complications therefrom, sub-fertility and infertility.

8.10 Any expenses incurred in respect of illness, injury or disablement, arising from any fault, carelessness, indiscretion of the employee, participation in or attending any hazardous sport, pursuit or pastime; the performance of any unlawful act; exposure to any unjustifiable hazards, except when endeavouring to save human life; provoked assault, the use of drugs not medically prescribed, congenital anomalies; excessive use of alcohol; or any breach of the peace or disorderly conduct.

8.11 Charges for telephone and television services during hospitalisation.

8.12 Any expenses for treatment in mental cases which have been certified by a Government doctor in charge of mental case.

Page 33 of 100

Staff Insurance


Revision No: 0



1.0 Introduction

This section covers the Company's Group Personal Accident and Social Security Organisation (SOCSO) coverage under the Employee's Social Security Act.

2.0 Staff Insurance

2.1 You will be insured by The Company's Group Personal Accident Insurance Policy. The scheme shall provide benefits for death as a result of an accident following the schedule below:-

Group E - Managing Director / Senior Sales Manager (60 x last drawn salary) Group D - Finance Manager / Senior Sales Manager / Marketing Manager / Operating Manager (36 x last drawn salary) Group C - All other Managers, Executives & Supervisors (24xlast drawn salary) Group B - All others (12 x Last Drawn Salary)

2.2 If you are eligible as stipulated by the Social Security Act, 1969 (Act 4) then you will

further be insured under the SOCSO Insurance Scheme.

Page 34 of 100

Perquisites


Revision No: 0



1.0 Club Membership

1.1 The Company shall provide senior managers with subsidised membership to a

recreation club. 1.2 The Company shall pay the entrance fee up to an amount of RM10,000.00.

1.3 The Company shall also pay up to RM100 monthly subscription for eligible staff.

2.0 Company Car

2.1 The company may, at its discretion, provide company cars to the senior management

2.2 Employees provided with company cars should take good care of the cars. The

company will bear all expenses relating to maintenance and repairs but they must endeavour to keep such expenses within the budget allocated to them

2.3 The company may, at its discretion, allows fuel, toll and parking reimbursement, for

the senior management against actual receipt

2.4 The management may, at its discretion, provide the senior management employee with free parking at or near the place of the employment

Page 35 of 100

HRM Budgeting

Page 36 of 100

Sample HR Costs

ABC SDN BHD

DETAILED INCOME STATEMENT FOR THE PERIOD ENDED _____________________________

(ACTUAL VS BUDGET)

ACTUAL BUDGET

RM RM

HUMAN RESOURCE COSTS

HRLE - A.TRIP, DINNER & F.DAY 41,810.75 62,626.00

HRLE - ADVERTISEMENT - GENERAL 6,857.67 0.00

HRLE - EPF EMPLOYER - STAFF BONUS 3,350.35 16,474.00

HRLE - EPF EMPLOYER - UNUTILIZED LEAVE(DIRECTOR) 0.00 0.00

HRLE - EPF EMPLOYER - UNUTILIZED LEAVE (STAFF) 0.00 5,641.00

HRLE - HR DEVELOPMENT FUND 46,236.94 56,632.00

HRLE - PYSCHOMETRIC ASSESSMENT 0.00 0.00

HRLE - RETIREMENT BENEFIT 82,256.00 92,528.00

HRLE - RECRUITMENT EXPENSES 2,191.80 48,456.00

HRLE - SALARY - ASSIGNMENT ALLOWANCE 5,760.00 0.00

HRLE - SALARY - ALLOWANCE 0.00 0.00

HRLE - SALARY - ATTN INCENTIVE 1,470.00 1,384.00

HRLE - SALARY - BASIC 4,718,282.77 5,171,936.00

HRLE - SALARY - BONUS STAFF 30,556.36 68,639.00

HRLE - SALARY - CAR ALLOWANCE 145,353.99 148,800.00

HRLE - SALARY - CAREER LADDER 32,896.00 34,232.00

HRLE - SALARY - EMPLOYER EPF 584,719.93 621,112.00

HRLE - SALARY - EMPLOYER SOCSO (STAFF) 63,695.45 67,888.00

HRLE - SALARY - EXGRATIA 0.00 0.00

HRLE - SALARY - HANDPHONE ALLOWANCE 48,636.04 57,384.00

HRLE - SALARY - MEAL ALLOWANCE AND OTHER 9,915.18 19,816.00

HRLE - SALARY - SPECIAL ALLOWANCE 28,944.36 4,000.00

HRLE - SALARY - OVERTIME 81,138.84 100,544.00

HRLE - SALARY - SHIFT ALLOWANCE AND OTHERS 1,600.00 1,600.00

HRLE - S.WELFARE - ACCOMM 11,384.00 13,784.00

HRLE - STAFF WELFARE - BROAD BAND 687.00 0.00

HRLE - S.WELFARE - FOOD/BEV 10,324.00 84,040.00

HRLE - S.WELFARE - MEDICAL FEES 31,043.41 32,784.00

HRLE - STAFF WELFARE - MOBILE WORKFORCE 0.00 0.00

HRLE - STAFF WELFARE -MV INTEREST SUBSIDY 0.00 0.00

HRLE - STAFF WELFARE - NURSERY FACILITIES 0.00 0.00

HRLE - S.WELFARE - OTHERS 68,909.01 114,152.00

HRLE - S.WELFARE - SRC EXPENSES 0.00 8,664.00

HRLE - S.WELFARE - TRAINING 73,511.87 233,296.00

HRLE - S.WELFARE - TRANSPORT 429.00 14,800.00

HRLE - S.WELFARE - UNIFORM 11,718.40 99,740.00

HRLE - S.WELFARE - UNUTILISED LEAVE-STAFF 60.00 47,006.00

HRLI - S.WELFARE - OTHERS-XYZ Subsidiary 7,463.40 0.00

HRLR - STAFF WELFARE - FOOD/BEV - YAYASAN 101,709.68 50,424.00

6,252,912.21 7,278,382.00

YEAR TO DATE

Page 37 of 100

Sample HR Budget - Notes and Comments (part1) COMPANY NAME: ABC SDN BHD - HRM

BUDGET: HRM ______________ BUDGET

[EXP/3] NOTE TO OPERATING EXPENSES

No A/C JUSTIFICATION/REMARKS

1 2510111610 ENTERTAINMENT (meal expenses)

Signing for- Consultants / Suppliers est … in Canteen / Others 1,000

2 2510112410 GIFTS & PROMOTION

products requested for Consultants, O/sea subsidiaries' staff 400

3 2520110830 COURIER SERVICES 900

4 2520113200 INSURANCE GENERAL

Group Term Life /Critical Illness/PA for 226 pax est only (say 15% increase) 50,000

Group Hospitalization & surgical (say 10% increase) 40,700

Ind Policy (maintenance staff & Bus travel) 4,500

Laptop say 10units x RM5000 x 2.5% + 5% tax + RM10 stamp duty 1,260

Laptop cont 2006 NBV Ms Lim RM80000 x 2.5% + 5% tax + RM10 stamp duty (Feb07) 2,200

Grand Total 98,660

5 2520114410 LABOUR CHARGES (Casual Labour - Basic)

:- ERP, ISP project (RM 10,000 x 3 person x 12mth) 360,000

Part timer ( 5 person x RM1000 x 12mths) 60,000 420,000

6 2520114820 MAINTENANCE EQUIP

Actual Jan-Jul 08 = RM755

Forecast 5% increse for 2008 1,360

Laptop say 15 units x RM200/yr 3,000

Others 1,000

5,360

7 2520114890 M.VEHICLE PARKING

Using Admin staff for HRM errands -Salary related matters

120

8 2520116000 PENALTY

Say for late statutory submission 300

9 2520116010 POSTAGE & STAMPS

Forecast 100 letters for 2009 30

10 2520116040 PROF FEES LEGAL

EES prof fees 19,000

11 2520117220 STAMP DUTY

Car loan, laptop etc 300

12 2520117230 STATIONERY & PRINTING

Actual Jan-Jul08 =RM4,482.80 say add 10% increase 8,453

(L/head,A4paper,stickers,handbooks, access card,payslip,leave card etc )

Diary for Staff (226staff*RM12 + 100 pieces) 3,912

Total 12,365

13 2520117240 SUBSCRIPTION FEES

MEF 2,100

MIM 450

SRC - Registration as Non- Profit Organization (Pending for approval) 100

Total 2,650

Page 38 of 100

Sample HR Budget - Notes and Comments (part2) 14 2520117610 TEL & FAX

Actual Jan-Jul 08=RM861

Forecast 50% increse for 2009 due to Tele-interview 2,214

15 2520117650 TRAVELLING & SUBS - LOCAL

(A) HRM staff on official duties during non working days (petrol, toll & parking) 1,000

(B) HRM staff - Branch visit to Sbh & Swk

:- Air ticket RM200.00 x 2trips x 2 Branch AirAsia x 2 pax 1,600

:- Airport tax RM100.00 + RM100.00 x 2trips x 2 Branch AirAsia x 2 pax 1,600

:- Hotel RM150 x 2 nites x 2 trips x 2 Branches x 2 pax 2,400

:- Taxi KLIA RM160 return x 2 trip x 2 Branches x 2 pax 1,280

:- Meal BLD - (RM30 x 2days x 2trips x 2 pax) 240

Sub total *** 7,120

Grand Total 8,120

16 2520117660 TRAVELLING & SUBS - O/SEAS

(A) HRM International meeting to Indo/HK etc "one trip per year"

:- Air ticket to Indo RM500 x 2 (to&fro) x 2 pax -

:- Hotel 2nites x RM120 x 2 pax -

:- Taxi KLIA one trip per year x 2 pax -

:- O/sea pocket allw RM76 x 2 pax -

Sub total 0

(B) HRM meeting to Singapore - 2 trips per year

:- Air ticket (to&fro) - RM 750 x 2 trips x 2 pax) 3,000

:- Hotel 2 nites x RM150 - 2 pax x 2 trips 1,200

:- Taxi KLIA (to&fro) - RM 160 return x 2 pax x 2 trips 640

:- Meal BLD - (RM30 x 2days x 2trips x 2 pax) 240

Sub total 5,080

Grand Total 5,080

17 2540110000 A.TRIP. DINNER

(A) Staff Family day:-

Say RM100/pax ( 225 satff x 3) 67,500

Sub total 67,500

(B) Staff Annual Diner :-

Say RM90/pax x (225 staff + 110 Spouse) 30,150

External Entertainer say -

L/Draw 20,000

Venue set up cost 1,000

Branch staff invited to attend :-

Hotel 5 pax x RM150 twin sharing (5x150) 750

Air ticket 5 pax x RM500 2,500

Sub total 54,400

Grand Total 121,900

18 2540111630 EPF- Clerk Bonus - Est based on 2mths sal 16,473

19 2540111680 Staff Welfare - Unutilised Leave - EPF

Say 12% on RM90636 11,281

Page 39 of 100

Sample HR Budget - Notes and Comments (part3) 20 2540116900 ADVERTISEMENT - GENERAL (Staff Recruitment)

Career Fairs ( 4 x RM 4,500) 18,000

Advertisement ( Jobstreet / Newspaper - 30 positions x RM380 + 2 ads @ 5k) 21,400

Head Hunters [1 position salary 8k x 12mth x 18%] 17,280

Employee referral scheme (RM300 / RM 700 - 20/10positions) 13,000

Psychometric Assessments (10 pax) 3,000

Target sourcing (attend convention) -

Total 72,680

New * Recruitment Outsource Partnership -

21 2540117210 SALARY ATTN INCENTIVE 2,079

(Sbh / Srw : RM 157.5 per month, +10% for 2009)

22 2540117220 SALARY BASIC

Assume 5% annual & promotion increment. 8,053,634

23 2540117240 BONUS - STAFF

As per listing - Clerk say 2mth 137,273

24 2540117250 SALARY CAR ALLOWANCE 223,200

Actual : RM193, 200 + (500 x 5 x 12)

25 2540117251 CAREER LADDER 51,348

Actual : RM39,348 + (500 x 2 x 12)

26 2540117260 Proposed EPF (@ 15%) - STAFF SALARY (Permanent + Cotract) 1,213,670

( EPF @ 12% : RM967,156 --> diff : RM 246,514)

27 2540117280 SOCSO 107,316

28 2540117300 HANDPHONE ALLOWANCE 86,076

(actual : RM68,076 + (300 x 5 x 12)

29 2540117310 SALARY MEAL ALLOWANCE 29,728

(Actual : Branch - RM16,008 + [OT]Jan - Aug '08 : RM8,315 - +10% for 2009

30 2540117325 Others Allowances- Special Allowance

ICT (3000 x 12) 36,000 42,000

QAD (500 x 12) 6,000

31 2540117330 OVERTIME 150,812

(actual Jan - Aug : RM91,401.00 Est '09 + 10%)

32 2540117340 SALARY - SHIFT ALLOWANCE 2,400

(Maintenance team : RM200 x 12)

33 2540117360 STAFF WELFARE ACCOMODATION

Refer to sal listing 15,876

Est - F/Liners who stay at relative house while on outstation duties RM50/night 4,800

20,676

34 2540117370 STAFF WELFARE FOOD & BEV 187,414

Yearly Canteen RM3.10 x (223+6Dir) =RM709.9 x 22day/mth x 12 mths

Page 40 of 100

Sample HR Budget - Notes and Comments (part4) 35 2540117390 MEDICAL

Premployment 40new x RM45 1,800

HRM dept only say 3pax x 12mths X RM50 1,800

3,600

36 2540117396 Motor Vehicle Assistant programme

(Interest subsidy 3% - (max1500*100pax) 150,000

37 2540117410 S.WELFARE OTHERS

(A) Staff Awards

Long Service awards

5 yrs = AM-VP (2x RM5,000 and 9 Exe x RM3,000 37,000

10yrs= 1 Mgr x RM5,000 and 3Exe x RM3,000 14,000

15yrs= 2 Mgr x RM5,000 and 5 Exe x RM3,000 25,000

76,000

Plaque/certificate/ribbon etc 850

76,850

(B) Others

Baby gifts say 20pax RM140 products 2,800

Hospitalization gifts say 20pax x RM100 products 2,000

Wedding angpow say 15pax x RM200 3,000

Condolence money say 20 x RM100 2,000

Note No more staff interaction funds -

Hardship funds est only 30,000

CNY angpow 240 x RM10 2,400

42,200

( C ) Free Product Sample 5,000

Pesta Durian -

mooncake (223staff*1box -RM20) 4,460

* 9,460 128,510

38 2540117430 STAFF WELFARE - SRC

Year end reward- Advisor 2pax (RM500+PVRM500) 2,000

12 SRC committee (RM500+PV500 evaluated at 60%) 7,200

SRC working meal allow, petrol,parking 500

SRC O/T 1,000

SRC dinner with Dirs 1,600

P/Stationer 700

13,000

39 2540117450 STAFF WELFARE TRANSPORT

Ampang & Subang (save RM72k) -

Sri Muda/ Batu Tiga route (Own Drivers) + Taxi 22,200

22,200

40 2540117460 STAFF WELFARE UNIFORM

Official Uniform 96,500

T-shirt - Star Product Launching (say 270 x RM12) 3,240

99,740

41 2540117480 STAFF WELFARE - UNUTILISED LEAVE

Based on payout for unutilized leave - frontliner (RM85465.04 x10%) 94,012

Page 41 of 100

Sample HR Budget - Notes and Comments (part5) 42 New Spot Bonus 150,000

43 New EPF of spot Bonus 18,000

44 New Allow - Petrol 14,856

45 New Salary - Retail Outlet Incentive 4,862

(Actual Jan - Aug '08 : 2701, +20% for 2009)

46 New Salary - L/Pay (Maint.) ALLOWANCE (say ave 5days/mth) 6,600

47 New Salary - Branch Assignment ALLOWANCE 11,400

48 Propose Staff Welfare

1 Medical - RM500 per staff per year include dental & mediacl check 111,500

2 Kidnergarden/ Nursery Facilities - tranpotation (6000*12mth) -

- Subsidy Fees (RM100*50pax*12mth) - -

3 Mobile Workforce Scheme (Rm100*50staff) -

4 15% EPF (3% extra) 246,514

** Justification : Removal of Labour Charges (item 5 - ERP Project - RM 360,000)

and Special Alloance (item 30 : paying Corp staff - RM 36,000) = RM396,000 is

enough to cover for item 1 & 4 proposed (total of RM358,014)

49 2620001000 PROFIT SHARING - STAFF -- to be confirmed

50 2620001100 EPF PROFIT SHARING - STAFF ( -- to be confirmed

(excluding Profit Sharing) 11,934,738

Page 42 of 100

Sample HR Variance Report

Page 43 of 100

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Page 44 of 100

Sample HR Budget ABC SDN BHD

INCOME STATEMENT FOR PERIOD ENDED _______________________

MTDACT MTDBGT MTDVAR MTDVAR% YTDACT YTDBGT YTDVAR YTDVAR% TTLBGT(K) BGTBAL(K)

39000-00 OTHER INCOME 0 0 0 NO BGT 979.29 0 979.29 NO BGT 0 -1

SUB-TTL 30I100 OTHER INCOME 0 0 0 NO BGT 979.29 0 979.29 NO BGT 0 -1

40130-00 ADVERTISEMENT -100 -3,000.00 2,900.00 97 -21,610.30 -55,750.00 34,139.70 61 -98 -77

40200-00 CAFETERIA BENEFIT 0 0 0 NO BGT 0 0 0 NO BGT 0 0

40700-00 DONATION/CONDOLENCE 0 0 0 NO BGT 0 0 0 NO BGT 0 0

40910-00 GIFTS & PROMOTION 0 0 0 NO BGT 0 -200 200 100 0 0

40930-00 ENTERTAINMENT 0 -250 250 100 0 -500 500 100 -1 -1

41500-00 GIFT 0 0 0 NO BGT 0 0 0 NO BGT 0 0

44060-00 TRAVELLING & SUBS -105 0 -105 NO BGT -1,222.60 -500 -722.6 -145 -7 -6

44070-00 TRAVELLING & SUBS O/SEAS 0 -1,430.00 1,430.00 100 0 -4,310.00 4,310.00 100 -4 -4

SUB-TTL 40E100 MARKETING & PROMOTION -205 -4,680.00 4,475.00 96 -22,832.90 -61,260.00 38,427.10 63 -111 -89

40500-00 CANTEEN EXPENSES 0 0 0 NO BGT 0 -150 150 100 0 0

40520-00 COURIER SERVICES 0 0 0 NO BGT -367.25 -400 32.75 8 -1 -1

41700-00 INSURANCE GENERAL -5,312.66 0 -5,312.66 NO BGT -31,809.59 -3,460.00 -28,349.59 -819 -86 -55

41840-00 ISO EXPENSES & AUDIT 0 0 0 NO BGT 0 0 0 NO BGT 0 0

42320-00 LABOUR CHARGES 0 -320 320 100 0 -1,920.00 1,920.00 100 -4 -4

42520-00 MAINTENANCE EQUIP -131.67 -750 618.33 82 -1,040.02 -2,800.00 1,759.98 63 -6 -5

42560-00 M.VEHICLE PARKING 0 -10 10 100 -18.2 -60 41.8 70 0 0

43100-00 POSTAGE & STAMPS 0 0 0 NO BGT 0 -10 10 100 0 0

43110-00 PENALTY 0 0 0 NO BGT 0 -300 300 100 0 0

43130-00 PROF FEES LEGAL 0 -19,466.00 19,466.00 100 0 -19,466.00 19,466.00 100 -19 -19

43920-00 STATIONERY & PRINTING -155.95 -550 394.05 72 -2,301.16 -9,200.00 6,898.84 75 -13 -10

43930-00 STAMP DUTY 0 -100 100 100 0 -200 200 100 0 0

43940-00 SUBSCRIPTION FEES -37.5 -220 182.5 83 -225 -1,320.00 1,095.00 83 -3 -2

43960-00 SUNDRY EXPENSES 0 0 0 NO BGT 0 0 0 NO BGT 0 0

44050-00 TEL & FAX -209.96 -350 140.04 40 -1,012.64 -2,200.00 1,187.36 54 -4 -3

SUB-TTL 41E100 GENERAL & ADMINISTRATION -5,847.74 -21,766.00 15,918.26 73 -36,773.86 -41,486.00 4,712.14 11 -137 -100

40120-00 A.TRIP. DINNER & FAM DAY 221.94 0 221.94 NO BGT -73,039.84 -151,500.00 78,460.16 52 -204 -131

43555-00 RECRUITMENT EXPENSES 0 -750 750 100 0 -3,000.00 3,000.00 100 -5 -5

43700-00 SALARY BASIC -14,205.00 -19,060.00 4,855.00 25 -84,468.47 -114,360.00 29,891.53 26 -229 -144

43710-00 SALARY OVERTIME -397.83 -640 242.17 38 -2,519.11 -3,840.00 1,320.89 34 -8 -5

43730-00 SALARY BONUS 0 -559 559 100 -290.18 -559 268.82 48 -2 -2

43740-00 SALARY CAR ALLOWANCE 0 -5,350.00 5,350.00 100 0 -32,100.00 32,100.00 100 -64 -64

43750-00 SALARY ATTN INCENTIVE 0 -60 60 100 0 -360 360 100 -1 -1

43760-00 SALARY MEAL ALLOWANCE -65 -1,000.00 935 94 -405 -6,000.00 5,595.00 93 -12 -12

43765-00 SALARY-CAREER LEADER 0 -1,000.00 1,000.00 100 0 -6,000.00 6,000.00 100 -12 -12

43770-00 EMPLOYER EPF -1,720.00 -2,290.00 570 25 -10,315.78 -13,740.00 3,424.22 25 -27 -17

43773-00 EPF-CASUAL LABOUR 0 0 0 NO BGT 0 0 0 NO BGT 0 0

43777-00 EPF-EMPLOYER(SALARY BONUS) 0 -67 67 100 -34.82 -67 32.18 48 0 0

43780-00 EMPLOYER SOCSO -238 -283 45 16 -1,428.10 -1,698.00 269.9 16 -3 -2

43782-00 EPF - UNUTILISED LEAVE 0 0 0 NO BGT 0 0 0 NO BGT 0 0

43790-00 HANDPHONE ALLOWANCE 0 -2,010.00 2,010.00 100 0 -12,060.00 12,060.00 100 -24 -24

43796-00 SALARY OVERSEAS ALLOWANCE 0 0 0 NO BGT 0 0 0 NO BGT 0 0

43797-00 SALARY EXGRATIA 0 0 0 NO BGT 0 0 0 NO BGT 0 0

43798-00 SALARY-SHIFT ALLOWANCE 0 0 0 NO BGT 0 0 0 NO BGT 0 0

43799-00 SALARY- ASSIGNMENT ALLOWAN 0 -300 300 100 0 -1,800.00 1,800.00 100 -4 -4

43800-00 STAFF WELFARE TRANSPORT -4,460.00 -7,000.00 2,540.00 36 -27,401.00 -42,000.00 14,599.00 35 -84 -57

43810-00 STAFF WELFARE ACCOMODATION 0 0 0 NO BGT 0 0 0 NO BGT 0 0

43820-00 S.WELFARE FOOD/BEV -330 -385 55 14 -1,980.00 -2,310.00 330 14 -5 -3

43830-00 STAFF WELFARE TRAINING -800 0 -800 NO BGT -890 0 -890 NO BGT 0 1

43840-00 STAFF WELFARE UNIFORM -994 0 -994 NO BGT -3,486.00 -73,240.00 69,754.00 95 -83 -80

43850-00 MEDICAL -342 -190 -152 -80 -1,041.00 -1,140.00 99 9 -2 -1

43870-00 S.WELFARE OTHERS -3,018.40 -10,087.00 7,068.60 70 -80,382.27 -60,522.00 -19,860.27 -33 -121 -41

43871-00 STAFF WELFARE-SRC 0 -1,100.00 1,100.00 100 -6,120.00 -6,600.00 480 7 -13 -7

43880-00 STAFF WELFARE-UNUTILISED L 0 0 0 NO BGT 0 0 0 NO BGT 0 0

SUB-TTL 43E100 HUMAN RESOURCES -26,348.29 -52,131.00 25,782.71 49 -293,801.57 -532,896.00 239,094.43 45 -904 -610

40720-00 DEPRECIATION -1,317.63 -3,220.00 1,902.37 59 -7,371.29 -19,320.00 11,948.71 62 -39 -31

SUB-TTL 44E100 DEPRECIATION -1,317.63 -3,220.00 1,902.37 59 -7,371.29 -19,320.00 11,948.71 62 -39 -31

43720-00 SALARY PROFIT SHARING - ST -59,480.13 -1,575.86 -57,904.27 -3,674 -84,170.42 -7,304.78 -76,865.64 -1,052 -14 70

43721-00 SALARY PROFIT SHARING - DI 0 0 0 NO BGT 0 0 0 NO BGT 0 0

43775-00 EPF SALARY P/SHARING - STA -7,137.61 -189.1 -6,948.51 -3,675 -10,007.75 -876.58 -9,131.17 -1,042 -2 8

43776-00 EPF SALARY P/SHARING - DIR 0 0 0 NO BGT 0 0 0 NO BGT 0 0

SUB-TTL 45E100 PROFIT SHARING -66,617.74 -1,764.96 -64,852.78 -3,674 -94,178.17 -8,181.36 -85,996.81 -1,051 -16 79

TOTAL -100,336.40 -83,561.96 -16,774.44 -20 -453,978.50 -663,143.36 209,164.86 32 -1,207 -753

Page 45 of 100

Sample HR CAPEX Budget

ABC SDN BHD

BUDGET: _________________

NEW CAPITAL EXPENDITURE/FIXED ASSETS

DATE

A/C OF

CODE DESCRIPTION PURCHASE RM JUSTIFICATION/REMARKS

3110003000 Plant & machinery -

3110004000 Equip & tool - factory/warehouse -

3110004010 Equip & tool - lab -

3110004030 Equip & tool - office 2,000.00 Estimation

3110004040 Equip & tool - maintenance -

3110004050 Equip & tool - function & events -

3110004500 Electrical installation -

3110005000 Air conditioner -

3110005500 Furnitute & fittings 2,000 Estimation

3110006000 Computer Hardware

Laptop Scheme - 10 units thru out 2009 50,000 Company Laptop Scheme

Desktop - 10 units (Contingency thru out 2009 35,000 Desktop 10 units- Contigency Fund

Scanner 2008 Qtr 1 800 HR matters eg scanning of staff photos

PC Ram -additional 1GB 2008 Qtr 1 400

As actual specified RAM is not

compatible & not sufficient for XP

operating system

Maybank2e.net Devices 2008 Qtr 1 1,000 To assist salary crediting process

Desktop -1 unit (HRM) 2008 Qtr 1 3,500 Replacement

3110006500 Computer Software

Laptop Scheme - 10 units thru out 2009 15,000

Desktop - 10 units (Contingency

Funds) thru out 2009 15,000

Desktop - 1 unit (HRM) 2008 Qtr 1 1,500

3110007000 Motor vehicle -

126,200.00

Page 46 of 100

Sample HRDF Budget Report

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Page 47 of 100

EA Form

Page 48 of 100

Employee Benefits and Income earned by Staff exempted from Income Tax

With effect from YA 2008, employees are given tax exemption on allowances, benefits in kind and perquisites that received from their employer as follows:

(a) perquisites in relation to travel allowance, petrol card, petrol allowance or any of its combination for travelling between the home and work place up to RM2,400 per year.

(b) perquisites in relation to travel allowance, petrol card, petrol allowance or toll rate or any of its combination for travelling for official duties up to RM6,000 per year.

(c) parking rate or parking allowance.

(d) meal allowance.

(e) child care allowance of up to RM2,400 a year.

(f) gifts and monthly bills for fixed line telephone, mobile phone, pager, or broadband.

(g) the amount of subsidy on interest of housing, education or car loan shall be determined in accordance with the following formula: A x (B / C)

A – difference between the amount of interest to be borne by the employee and the amount of interest payable by the employee in a basis period for a year of assessment;

B – the total aggregate of balance of the principal amount of the housing, education or car loan taken by the employee in a basis period for a year of assessment or RM300,000.00, whichever is the lower; and

C – the total aggregate of the principal amount of the housing, education or car loan taken by the employee.

(h) medical benefits exempted from tax be extended to include expenses on maternity and traditional medicines.

(i) discounted price for consumable business products of the employer up to RM1,000 per year.

(j) discounted price for services provided by the business of the employer and for the benefit of the employee, spouse and child of the employee.

The above exemptions are not extended to an employee where the employee has control over his employer. All the above proposals are effective from Y/A 2008 except for item (a) which is effective from Y/A 2008 to Y/A 2010.

http://www.nbc.com.my/blog/employee-benefits-and-income-earned-by-staff-exempted-from-income-tax/

http://www.nbc.com.my/blog/employee-benefits-and-income-earned-by-staff-exempted-from-income-tax/

Page 49 of 100

Malaysia Income Tax Guide 2014

Whenever the tax season rolls around (that’s 1st March to 30th April), there is

inevitably a sense of worry amongst the public because there are many financial,

technical and even legal considerations to be taken into account when filing in at

Lembaga Hasil Dalam Negeri (LHDN or Hasil) or online.

Two key things to remember:

1. Tax rates are Progressive, so you only pay the higher rate on the amount above the

rate (i.e. you will never have less “net income after tax” by earning more!).

2. Tax rates are on Chargeable Income, not salary or total income. Chargeable income

is calculated after tax exemptions and tax reliefs (more below).

First off, we start with the table for personal income tax rates in Malaysia for the

Assessment Year 2013, so everyone would be able to cross-check the tax bracket and

the amount of tax needed to pay.

Chargeable Income (RM) Calculations (RM) Rate (%) Tax(RM)

0 - 2500 On the first 2,500 0 0

2,501 - 5,000 Next 2,500 0 0

5,001 - 10,000 On the first 5,000

Next 5,000 2

0 100

10,001 - 20,000 On the first 10,000

Next 10,000 2

100 200

20,001 - 35,000 On the first 20,000

Next 15,000 6

300 900

35,001 - 50,000 On the first 35,000

Next 15,000 11

1,200 1,650

50,001 - 70,000 On the first 50,000

Next 20,000 19

2,850 3,800

70,001 - 100,000 On the first 70,000

Next 30,000 24 6,650 7,200

Page 50 of 100

Chargeable Income (RM) Calculations (RM) Rate (%) Tax(RM)

Exceeding 100,000 On the first 100,000

Next RM 26 13,850

Budget 2014 update: 1-3% reduction in tax rates but only after 2015!

Many would have heard about the announcement in the Malaysia Budget 2014 (on 25th October 2013), where personal income tax rates are being reduced across the board by 1-3% for the assessment year 2015 (filing in March/April 2016). As it doesn’t affect Assessment Year 2013 (or even 2014) tax returns, we’ve put it in this accordion, but we’ll come out with a full guide once its closer to the date.

Page 51 of 100

Chargeable Income

Tax Rate (2013 and 2014) Cumulative Tax

Tax Rates (2015 - ) Cumulative Tax Saving

From RM1 - RM5,000

0% RM0 0% RM0 -

From RM5,001 - RM20,000 2%

RM300 (RM0 after RM400 rebate) 1%

RM150 (RM0 after RM400 rebate) -

From RM20,001 - RM35,000

6% RM1,200 (RM800 after RM400 rebate)

5% RM900 (RM500 after RM400 rebate)

RM300

From RM35,001 - RM50,000

11% RM2,850 10% RM2,400 RM450

From RM50,001 - RM70,000

19% RM6,650 16% RM5,600 RM1,050

From RM70,001 - RM100,000

24% RM13,850 21% RM11,900 RM1,950

From RM100,001 - RM250,000

26% RM52,850 24% RM47,900 RM4,950

From RM250,001 - RM400,000

26% RM91,850 24.5% RM84,650 RM7,200

RM400,001 and Above

26%

25%

Page 52 of 100

How Much Do I Have To Earn Before Paying Income Tax? For most residents of Malaysia, the key figure to take note of is about “RM36,704 per

year (about RM3,060 per month)” which is inclusive of all benefits, allowances,

bonuses, overtime and commissions. If you’re earning anywhere below that figure, then

there’s no need for you to open up a file for tax to be deducted from your income

(while the con is that you’re not earning as much as you’d like, the pro is that there’s

less hassle from a tax perspective!).

How did we determine that any income below RM36,704 (about RM3,060 per

month) is not taxable? Take a look at our quick guide to the tax cut-off point for

Malaysia below.

However, if you do earn above that, you need to have a tax file opened with your

income tax automatically deducted from your income (welcome to the world of big

money!).

Some extra notes about income tax that you may find interesting:

1) For non-residents of Malaysia (people who have been living in the country for less

than 182 days per year), the tax rate has been set at 26% on all the income that has

been earned in Malaysia. regardless of your citizenship or nationality. However, there

are some exceptions to the matter. Certain professions such as public entertainers

(15%) as well as those who receive payments for services in connection with the use of

property or installation, payments for technical advice and rent (10%) are taxed

differently.

2) You may still be overpaying or underpaying on your tax, even if you are a salaried

worker or civil servant under a Potongan Cukai Bulanan (PCB), a Monthly / Schedular

Tax Deduction (MTD) system or if you are self-employed / own your own business.

What is Chargeable Income in Malaysia? As mentioned before, the tax rates above are effected on a person’s Chargeable Income

(rather than salary or total income, in fact, the amount of the chargeable income is

usually much lower). Now I’m sure many of you first-timers may be wondering what

your “Chargeable Income” is.

You take the following equation and apply where necessary:

http://savemoney.my/personal-income-tax-malaysia-2014#mintax

http://savemoney.my/personal-income-tax-malaysia-2014#mintax

Page 53 of 100

Chargeable Income = Taxable income – Tax exemptions – Tax Reliefs

Check out the example below for a general idea:

You are earning a RM40,000 salary, you have a RM2,000 local bank interest income as

well as RM13,000 from property rental income a year. That should bring your

chargeable income to RM55,000 correct? Nope, that’s not the way to go about it. Even

without taking into account the many tax reliefs available, every taxpayer gets the

standard RM9,000 individual tax relief as well as a maximum relief of RM6,000 for EPF

contributions. That means your EPF contribution is calculated at 11% of RM40,000, i.e.

RM4,400. Also, while “interest” is taxable income (more on this below), all local bank

interest income is tax exempted (lucky us!).

Therefore, your Chargeable Income (by applying the aforementioned formula) will

actually be:

RM55,000 – RM2,000 – (RM 9,000 + RM4,400) = RM39,600.

And there you have it! A much lower figure than which you initially thought would be

the amount!

Taxable Income in Malaysia Taxable income actually refers to the “base upon which an income tax system imposes

tax”. In general, the Lembaga Hasil Dalam Negeri (LHDN) organisation includes all kinds

of earnings which the Malaysian taxpayers have to pay for, but which is reduced by

expenses and other deductions. Some of them include the following:

1. General Taxable Income

a) Business or Profession

b) Employment

c) Dividends

d) Interest (except bank deposit interest)

e) Discounts

f) Rent

g) Royalties

h) Premiums

i) Pensions

Page 54 of 100

j) Annuities

k) Others

2. Perquisites

Perquisites are taxable benefits that can be converted to cash and are given to an

employee from his/her employer.

Examples of which include:

1) Bill Claims

If your employer pays your utility, mobile phone, income tax, road tax or car insurance

tax bills for you, then the amounts paid are considered to be perquisites and are

taxable.

Example: John’s company pays his RM100 mobile phone bill. Then the amount of

RM100 is a perquisite and is taxable

2) Company Credit Card

If your employer provides you with a credit card to make purchases on behalf of the

company, but you use that card instead for personal use, then any retail purchases you

make including the annual fee of the credit card are considered to be perquisites and

are taxable.

Example: Tom uses the company credit card which has an annual fee of RM200, to

purchase a flat screen TV worth RM5000 for his home. Then the amount of RM5200 is a

perquisite and is taxable.

3) Loan from Company

If your employer provides you with a interest free loan and the source of funds for the

loan is derived from extra company funds, then the loan is considered to be a perquisite

and is taxable.

Example: Leonard’s boss grants him an interest free loan of RM6000 using extra

company funds. Then the amount of RM6000 is a perquisite and is taxable.

Page 55 of 100

Or if your employer provides you with a loan with funds taken from a third party source

such as a bank etc. Then the difference in interest paid by the employee and the

employer is considered to be a perquisite and is taxable.

Example: Keith’s boss gives him a loan with 4% interest using company funds taken

from a local bank. The bank in turn, charged the company 8% interest for the initial

loan. If the company paid a total of RM900 of interest payments to the bank while Keith

paid a total of RM460 in interest payments to the company. Then the amount of RM900

– RM460 = RM440 is considered to be a perquisite and is taxable.

Or if your employer agrees to waive a loan in exchange for services performed, then the

loan amount is a perquisite and is taxable.

Example: Eddie’s boss gives him a study loan of RM30,000 and agrees to waive the loan

if he stays and works with the company for a minimum of 36 months. If Eddie

successfully completes this agreement and the loan is waived, then the amount of

RM30,000 is considered a perquisite and is taxable

4) Sponsored Club Membership

If your employer provides you with an individual club membership (not corporate), then

the cost of the membership is considered to be a perquisite and is taxable.

Example: Bruce is provided with an individual country club membership by his

company. The annual fees of the membership are RM400. Then the amount of RM400

is a perquisite and is taxable.

5) Sponsored Child Tuition Fees

If your employer pays for your child’s tuition fees, then the amount paid is considered

to be a perquisite and is taxable.

Example: Shawn’s company pays for the school fees of his son, Ross. The annual school

fees amount to a total of RM10,000. Then the amount of RM10,000 is a perquisite and

is taxable.

6) Company Insurance Premiums

Page 56 of 100

If your employer pays for an insurance premium that covers yourself and your

immediate family. Then the annual amount of premium paid is considered to be a


Example: Richard’s company pays for an insurance package that covers himself and his

wife and five children. The annual amount of premium paid is RM900. Then the amount

of RM900 is a perquisite and is taxable.

7) Personal Driver, Guard or Maid

If your employer allows reimbursements on the salary of personal drivers, guards or

maids, then the amount that is reimbursed is considered to be a perquisite and is

taxable.

Example: Colin’s company allows him to reimburse 40% of the cost to hire his personal

driver, Carlo. Carlo’s annual salary is RM25,000. Then the amount of RM10,000 is a


8) Special Staff Discounts

If your employer grants special staff discounts for certain products with monetary value

such as cars, furniture, electronics etc. Then the amount of discount given is considered

to be a perquisite and is taxable.

Example: Nathan’s company, BMW, grants him a special employee discount of 15% if he

chooses to buy a BMW. If Nathan buys a BMW worth RM250,000 but only pays

RM212,500 due to the 15% discount. Then the discount amount of RM37,500 is

considered to be a perquisite and is taxable.

9) Gift Vouchers

If your employer gives you gift vouchers with monetary value during festive seasons

such as Chinese New Year or Hari Raya. Then the monetary value of such gift vouchers

is considered to be a perquisite and is taxable.

Example: Donald’s company awarded him a RM100 Tesco voucher during Chinese New

Year. He subsequently used that voucher to pick up groceries for his family. The amount

of RM100 is considered to be a perquisite and is taxable.

Page 57 of 100

3. Benefits in Kind (BIK)

Benefits in Kind (BIK) are taxable benefits that cannot be converted to cash and are

given to an employee from his/her employer. Since Benefits in Kind do not have a direct

monetary value, there are two ways to determine the value of a BIK, the formula

method or the prescribed value method. Examples of Benefits in Kind include company

provided automobiles, lodging and household furnishing & electronics.

Formula Method:

Value of asset = Annual Value of Benefit

Life span of asset

Prescribed Value Method:

Assigns a predetermined value from a list sorted by classification of asset.

Example: Company Automobile

If your employer provides you with an automobile to use on the job and privately, then

the asset is considered to a benefit in kind and is taxable by the formula method. Any

petrol costs and toll bridge costs which are subsidized by the employer are included in

the total taxable amount as well.

Example: Christopher’s company provides him with a car worth RM81,000 to use to get

to work and travel around in his spare time. He passes by 1 toll bridge on his way to

work which charges RM1.50. Any toll payments he makes are subsidized by his

employer. In addition, his petrol costs are subsidized by his employer as well. In 2013,

he made a total of RM1,800 in toll payments and RM3,000 in petrol payments. For cars,

the prescribed average lifespan is set at a fixed 8 years.

Formula Method:

81,000 X 80% (20% abatement represents the value of the car when returned to the

employer)

8

= RM8,100 + RM1,800 (toll payments) +RM3,000 (petrol payments) = RM12,900

Page 58 of 100

Prescribed Value Method:

Cost of Automobile (RM)

Annual Prescribed Benefit of Automobile (RM)

Annual Prescribed Benefit of Petrol (RM)

Up to 50,000 1,200 600

50,001 - 75,000 2,400 900

75,001 - 100,000 3,600 1,200

100,001 - 150,000 5,000 1,500

150,001 - 200,000 7,000 1,800

200,001 - 250,000 9,000 2,100

250,001 - 350,000 15,000 2,400

350,001 - 500,000 21,250 2,700

500,001 and Above 25,000 3,000

Under the prescibed value method, since the value of the car falls between RM75,001 and RM100,000, then the amount taxable is RM3,600. In addition, his petrol costs are also set at a predetermined RM1,200.

Total Cost:

RM3,600 + RM1,200 + RM1,800 (toll payments) = RM6,600

Page 59 of 100

Tax Exemptions on Income in Malaysia

Tax exemptions in Malaysia come in many forms, and can be defined as “a personal

allowance or specific monetary exemption which may be claimed by an individual to

reduce taxable income”.

Generally speaking, it means they are income items which can be omitted from (we

refrain from using the word deductions here, because tax reliefs are also ‘deducted’

from your taxable income) the individual’s paycheck. Below you will find a full list of

those items along with their respective descriptions, so that you will get a general idea

of what to expect:

1) Leave Passage

Leave passage within Malaysia not exceeding three times in a year and one leave

passage outside Malaysia not exceeding RM3,000.

2) Medical and dental benefit

With effect from the year of assessment 2008, medical benefits exempted from tax is

expanded to include maternity expenses and traditional medicine like ayurvedic and

acupuncture without limit.

3) Retirement gratuity

The full amount of gratuity received by an employee on retirement from employment is

exempt if:

i. The Director General of Inland Revenue is satisfied that the retirement is due to ill

health;

ii. Retirement on or after reaching the age of 55 years/compulsory age of retirement

and the individual has worked 10 years continuously with the same employer or

companies within the same group;

iii. The retirement takes place on reaching the compulsory age of retirement pursuant

to a contract of employment or collective agreement at the age of 50 but before 55 and

that employment has lasted for 10 years with the same employer or with companies in

the same group.

Page 60 of 100

4) Gratuity paid out of public funds

Gratuity paid out of public funds on retirement from an employment under any written

law.

5) Gratuity paid to a contract officer

Gratuity paid out of public funds to a contract officer on termination of a contract of

employment regardless of whether the contract is renewed or not.

6) Compensation for loss of employment

This is payment made by an employer to his employee as compensation for loss of

employment either before or after the date of termination.

This compensation is exempted from tax. If compensation received is due to ill health.

Compensation received in other cases:

i. Termination before 1st July 2008 – exemption of RM6,000 for every completed year

of service with the same employer or with companies in the same group.

ii. Termination on or after 1st July 2008 – exemption of RM10,000 for every completed

year of service with the same employer or with companies in the same group

Compensation received by a director (not service director) of a Control Company is fully

taxable.

7) Pensions

Pensions received by an individual are exempt under the following conditions:

i. He retires at the age of 55 or at the compulsory age of retirement under any written

law; or

ii. If the retirement is due to ill health and the pension is received from the government

or from an approved pension scheme.

For an employee in the public sector who elects for optional retirement, his pension will

be taxed until he attains the age of 55 or the compulsory age of retirement under any

Page 61 of 100

written law. Where an individual receives more than one pension, the exemption is

restricted to the highest pension received.

8) Death gratuities

Monies received as death gratuity is fully exempted from income tax.

9) Scholarships

Any monies paid by way of scholarship to an individual whether or not in connection

with an employment of that individual is exempted from income tax.

10) Cultural performances

Money received under this category is exempted from tax on condition it is approved by

the Minister.

11) Interest

Income in respect of interest received by individuals resident in Malaysia from money

deposited with the following institutions is tax exempt with effect from 30 August 2008:

i. A bank or a finance company licensed or deemed to be licensed under the Banking

and Financial Institutions Act 1989;

ii. A bank licensed under the Islamic Banking Act 1983;

iii. A development financial institution prescribed under the Development Financial

Institutions Act 2002;

iv. The Lembaga Tabung Haji established under the Tabung Haji Act 1995;

v. The Malaysia Building Society Berhad incorporated under the Companies Act 1965;

vi. The Borneo Housing Finance Berhad incorporated under the Companies Act 1965.

12) Dividend

The following dividends are exempt from tax:

i. Dividends received from exempt accounts of companies.

Page 62 of 100

ii. Dividends received from co-operative societies.

iii. Dividends received from a unit trust approved by the Minister of Finance such as

Amanah Saham Bumiputra.

iv. Dividends received from a unit trust approved by the Minister of Finance where 90%

or more of the investment is in government securities.

13) Royalty

Royalties received in respect of the use of copyrights/patents are taxable if they exceed

the following exemption limits:

Types of Royalty Exemption (RM)

Publication of artistic works / recording discs / tapes 10,000

Translation of books / literary works 12,000

Publication of literary works / original paintings / musical compositions 20,000

However, the exemption stated above does not apply if the payment received forms

part of his emoluments in the exercise of the individual’s official duties.

14) Income Remitted from Outside Malaysia

With effect from the year of assessment 2004, income derived from outside Malaysia

and received in Malaysia by a resident individual is exempted from tax.

15) Fees or Honorarium for Expert Services

With effect from the year of assessment 2004, fees or honorarium received by an

individual in respect of services provided for purposes of validation, moderation or

accreditation of franchised education programmes in higher educational institutions is

exempted.

The services provided by an individual concerned have to be verified and acknowledged

by the Malaysian Qualifications Agency (MQA). However, the exemption does not apply

if the payment received forms part of his emoluments in the exercise of his official

duties.

Page 63 of 100

16) Income Derived from Research Findings

With effect from the year of assessment 2004, income received by an individual from

the commercialization of a scientific research finding is given tax exemption of 50% on

the statutory income in the basis year for a year of assessment for 5 years from the

date the payment is made.

The individual scientist who received the said payment must be a citizen and a resident

in Malaysia. The commercialized research finding must be verified by the Ministry of

Science, Technology and Environment.

17) Company Special Service Awards

With effect from the 2007 year of assessment, a tax exemption of up to RM1,000 has

been allocated for company special service cash or prize awards

18) Travelling Allowances

Travelling allowances of up to RM6,000 for petrol and tolls are granted a tax exemption

if the vehicle used is not under ownership of the company.

19) Benefits in Kind Exemptions

Certain Benefits in Kind pertaining to consumable services are not eligible for taxation.

Consumable Services

Example: Dental care, child care benefits, food & drinks, special arranged transportation

between pick-up points and special discounts for consumable products that cannot be

resold (such as food or toiletries etc.)

What Are Tax Reliefs? What about a tax relief? It is defined as “an amount that can be deducted from a

person’s annual income to reduce the amount on which tax is paid”.

To describe it in a more clear and concise manner, it is actually a way for you to lessen

your chargeable income.

Page 64 of 100

Let’s say you took home a monthly paycheck of RM40,000 from your company in 2013

and if there were no tax exemptions or reliefs, your chargeable income will remain the

same and your tax for the year would have been in the 11% bracket.

Now say the Government decides that all Residents of Malaysia should get a personal

tax relief of up to RM9,000 per year. Your chargeable income will now be RM31,000

which means that your tax would be in the 6% bracket.

These are the following reliefs available for Malaysian Residents:

Included in MTD system RM

Self and Dependent 9,000

Life insurance and EPF 6,000

Husband/Wife/Alimony Payments 3,000

Ordinary Child relief (per child) 1,000

Total > 15,000

Not usually included in MTD / PCB system but relevant to most taxpayers RM

Interest expended in 2013 to finance purchase of residential property dated 2010 (but interest payments starting in 2011 only)

10,000

Net saving in SSPN's scheme 6,000

Education Fees (Individual) 5,000

Updated: PRS Voluntary Contribution 3,000

Purchase of personal computer (every 3 years) 3,000

Insurance premium for education or medical benefit 3,000

Special relief for tax payers earning an income of up to RM8,000 a month (RM96,000 anually). Only applicable for the 2013 year of assessment.

2,000

Purchase of books, journals, magazines and publications 1,000

Page 65 of 100

Included in MTD system RM

Complete medical examination 500

Purchase of sport equipment for sport activities 300

Total 29,300

Not included in MTD system but relevant to certain taxpayers RM

Disabled Individual 6,000

Basic supporting equipment (for disabled self, spouse, child or parent) 5,000

Medical expenses for serious diseases 5,000

Disabled child 5,000

Medical expenses for parents 5,000

Child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities

6,000

Disabled Wife / Husband 3,500

Child age 18 years old and above, not married and receiving full-time tertiary education 1,000

Premium on new annuity scheme or additional premium paid on existing annuity scheme commencing payment from 01/01/2010 (amount exceeding RM1,000 can be claimed together with life insurance premium)

1,000

Total > 35,500

Tax Deductions vs Tax Reliefs Most of the time people get confused between Tax Deductions and Tax Reliefs, and its

easy to see why. They are for the most part the same thing, as they both allow you to

reduce your Chargeable Income (that is, before you even start looking at tax rate

tables). In fact most people worldwide use both terms interchangeably, and LHDN goes

one step further and classifies Tax Deductions as a reduction in your Chargeable Income

as a result of Gifts or Donations.

Page 66 of 100

As a rule of thumb, you can deduct up to 7% of your Taxable Income for gifts to

charities and institutions which are approved by the government (not all charities are

approved, so be sure to find out before you donate away!), unless you are giving to a

few selected government-related bodies, where there is less restrictions on the amount

deductible from your income.

For example, if you earned RM60,000 this year, and donated RM5,000 to an approved

charity, you may deduct RM4,200 (ie. 7% of RM60,000) off your chargeable income, in

addition to all those reliefs above.

What are the Tax Rebates in Malaysia for 2014? Some people will be having the question of how is a tax rebate different from a tax

relief? A tax relief is a reduction in your chargeable income (ie. before you calculate

tax) whereas a tax rebate is a reduction in your tax expenseafter you have calculated

your tax for the year.

Tax rebates (or also known as “tax refunds” but done automatically rather than actually

refunded to you). Simply put, there are income tax rebates for Malaysian taxpaying

citizens who are having a chargeable income of less than RM35,000 which is RM400.

There is also an additional RM400 rebate for married couples who have a chargeable

income of less than RM35,000 per year and are eligible for the RM3,000 wife / husband

/ alimony relief.

To give a quick calculation example for tax rebates:

Taxable Income: Salary of RM45,000 a year

Chargeable Income: RM45,000 – RM9,000 Personal Relief – RM2,000 One-off 2014

relief – RM4,950 EPF relief =RM29,050.

Tax calculated using Income Tax Tables (without counting any rebates): RM843

Tax Payable: RM843 – RM400 rebate = RM443

In the above example, you were eligible for the RM400 tax rebate because your

Chargeable Income was less than RM35,000 (it was RM29,050 in that example).

Another type of tax rebate, but which is only applicable for Muslim citizens, is the zakat

/ fitrah. Zakat is a compulsory payment for charity and considered to be compulsory as

it is one of the five pillars in Islam. It can be calculated via the Muslim taxpayer’s

Page 67 of 100

acquired wealth or income. Zakat Fitrah, on the other hand, can be considered to be a

small, compulsory levy that is imposed upon Muslim taxpayers only. It used to be

calculated in the olden days using a pack of rice grains (one pack is equivalent to

approximately 2.7 kg) but in the modern days, it is calculated based on the equivalent

price of this pack rice grains. You can read all about Zakat and the various types that

exists in our guide Zakat in Islam.

So… why is RM36,704 the cut-off point to pay tax? Assuming that you made RM36,704 in 2013…

Chargeable Income

Your Chargeable Income = Your taxable income – (Standard RM9,000 individual tax

relief + 11% EPF Contribution of your salary + Special tax relief of RM2,000 per month)

which means

Your Chargeable Income = RM36,704 – (RM9,000 + RM4,037 + RM2,000) = RM21,667

Based on the tax rate table above, RM21,667 would be taxed RM300 on the first

RM20,000 and RM100 on the remaining RM1,667 which brings it up to about RM400 in

tax.

RM400 Rebate

After taking into account the RM400 rebate for those with a chargeable income of

RM35,000 or less, you’ll be paying

RM400 – RM400 = RM0 (no tax, yay!) PCB / MTD System: Has your employer paid too much tax for you?

First off, do you know what the words “PCB / MTD” mean? The words are actually

acronyms for “Potongan Cukai Bulanan / Monthly Tax Deductions”.

How this works is that your employer will automatically deduct a certain amount from

your salary every month to pay for tax on your behalf, going towards paying your tax for

the year. This type of deduction is different from the basic Employees Provident Fund

(EPF) and Social Security Organization (SOCSO) monthly deductions.

Therefore, one can sum up that the MTD is calculated from one’s gross salary minus the

EPF deductions of up to RM6,000 per year. If you were to take a closer look at the sum

of the total MTD for the year, you will realise that the figure will be very close to your

http://savemoney.my/zakat-in-islam-what-is-zakat-nisab-and-how-to-calculate-it-all/

Page 68 of 100

actual tax expense for the year, but given that your company has no idea of your

additional reliefs other than being married or having children (such as Books, Sporting

equipment etc.), they are very likely to have been overpaying for you.

Even without taking into account those extra reliefs, the PCB/MTD schedules aren’t

100% accurate (and typically overpay tax on your behalf), as we will see shortly below:

Salary Gross Salary MTD Salary MTD

Deduction Actual Tax Expense

Paid too much / (little)

Monthly Amount RM3,500 RM3,115 RM34 RM23.55 RM10.45

Total Amount for 2013

RM42,000 RM37,380 RM408 RM282.60 RM125.40

Final Reminder

The 2013 tax assessment year follows the calendar year, so the 2013 tax year is

effective from 1st January 2013 to 31st December 2013.

Taxpayers can start submitting their income tax return forms for the year of assessment

2013 through e-filing as well. The due date for the submission of return forms are as

follows:

1) Employers (Form E) is 31 March 14

2) Residents and non-residents with non-business income (Form BE and M) is 30 April

14

3) Residents and non-residents with business income (Form B and M) is 30 June 14

4) Partnerships (Form P) is 30 June 14

Finally, do take note that you must keep records for 7 years from the date of filing so

don’t throw away any receipts or evidence of tax reliefs, keep them in a file sorted by

tax year.

Page 69 of 100

Salary & Benefits Consideration of principles for the determination of salary of a person.

Exercise 5.1 Employee A has been a Manager with ABC Company for 3 years and is currently earning a monthly salary of RM 5,040. Is Employee A paid fairly for his job?

Exercise 5.2 The grid shows ABC Company’s salary scale for a Manager: Indicate Employee A’s salary on the scale above. Is Employee A’s pay considered to be low, high or fair?

Exercise 5.3 A simple equation for determining the salary position of Employee A is by using the formula

= Salary of Employee Midpoint of Salary Scale

= RM 5,000 RM 6,300 = RM 0.80

Indicate on the grid the salary position of Employee A How far is Employee A’s salary from the Midpoint of the scale in terms of percentage?

RM 6,300

RM 8,190

RM 4,725

RM 6,300

RM 8,190

RM 4,725

1.30

1.0

0.75

Page 70 of 100

Salary & Benefits Consideration of principles for the determination of salary of a person. Compa-ratio (comparative ratio)

Refers to the salary position in the salary scale. A compa ratio of 1.0 is at the mid-point of the salary scale. On compa-ratio of 0.75 is at the lower end and a compa-ratio of 1.3 is at the top end.

In order to set individual salaries compared to market related salary, the usual measure used is compa-ratio.

The compa-ratio (C-R) is a reference that shows the relative position of an employee’s salary compared to the mid-point salary of a particular job grade. The compa-ratio of an employee’s salary is determined by the following method:

Current salary of employee is compared with mid-point salary of the job grade For example: Salary of Employee = C-R Mid-point Salary of Grade

Before awarding annual increments it is usually necessary to determine an employee’s current salary position (Compa ratio).

A compa ratio of lower than 0.75 indicates lower than job rate and a compa ratio of higher than 1.30 indicates higher than job rate. If the organization’s pay philosophy is to pay job rate than these indications are

minimum and maximum points for the job.

New salary scale

Mkt. mid point

130%

(CR 1.30)

Mid point (100%)

(CR 1.0)

X 70%

(CR 0.7)

Job points

SalaryRange

Sal

arie

s (R

M)

Page 71 of 100

Salary & Benefits Consideration of principles for the determination of salary of a person. The major factors to be considered in determining the salary of a person are:-

Step One – determine job grade in line with his job responsibilities

Refers to the job currently being held by the incumbent. It does not necessarily reflect the incumbents’ career status.

Step Two - Career Level (career grade)

Refers to capability ranking. Often due to business reasons the incumbent could be in a similar or a bigger job grade then his ability. Therefore, for proper management of people, organizations have to maintain information about a person’s career progression and capability level usually referred to as career level. For example, an Engineer with 6 years of relevant industrial experience after graduation should be considered as being in a career level higher then one who just graduated – refer page

Step Three - Years of relevant service

Refers to “seniority” in the job grade. The critical consideration is relevant work experience in the job level with performance rated as competent or better. Please refer facing page.

Step Four - Current Total Cash (Value)

Basic salary

Entertainment allowances

Transport allowances

Housing allowances

Domestic help allowances

Other fixed cash allowances

Page 72 of 100

Process for Determining Salary - continued

Performance Rating

Consideration of the incumbent’s record of performance over the immediate business performance period. Pay for performance is the factor that separates the best companies from the rest. Where management have developed and established a performance management process which is effective and accepted it becomes a key management tool for employee motivation. On the other hand, where the process has low acceptance it creates demotivation for the large majority of employees. Shown here is the best practice standard on salary positions (C-R) for different performance levels.

Rating Compa-ratio

Distinguished

Consistently exceeds most requirements associated with the position

Accomplishments are outstanding to the standards expected for the position and sustained over the review period

5

1.21 1.30

Commendable

Exceeds most requirements associated with the position

Accomplishments are very good (superior) and more than required by the job

4

1.13 –

1.20

Competent

Meets all the requirements associated with the position

Accomplishments are clearly in accordance with the job demands

3

0.97 –

1.12

Adequate

Meets some of the requirements associated with the position

Accomplishments are below expectations demanded of the job

2

0.89 –

0.96

Entry zone / unsatisfactory

Does not meet most of the requirements associated with the position

Consistently fail to meet expectations and standards in most area

1

0.88 – 0.75

Page 73 of 100

Avera

ge S

ala

ry In

cre

men

t an

d B

on

us b

y S

ecto

r in 1

999, 2

000 a

nd

2001

6

8

66

6

5

7

8

7

7.5

77

8

7

7.5

77

9

7.3

7.4

1.5

3.5

2

1.5

1.5

3

1

2

3

22

2

2.5

2

3

2

33

21

.72

2

5.5

7.5

8.5

7.5

6.5

7.8

1.6

1.5

1.5

1.5

2.5

0 1 2 3 4 5 6 7 8 9

10

Genera

l

Mark

et

Pla

nta

tion

Fin

ance

Consum

er

Insura

nce

ITM

anufa

ctu

ring

Moto

r Tra

de

Pro

perty

Salary Increses (%)

Inc 1

99

9(A

ctu

al)

Inc 2

00

0 (A

ctu

al)

Inc 2

00

1(F

ore

ca

st)

Bo

nu

s 1

99

9 (A

ctu

al)

Bo

nu

s 2

00

0(A

ctu

al)

Bo

nu

s 2

00

1(F

ore

ca

st)

Page 74 of 100

Process for Determining Salary - Annual Increment

The rate for job principle is usually accepted as fair and the first condition for equitable salary practice. If an individual is in the wrong job then the application of the principle will not produce the desired results.

The second major factor is the performance rating of the individual.

The third major factor is the average annual increment paid by peer companies for the year 2001. Shown below is the estimated annual increment for the year 2001 and the forecast for the year 2002.

Average Salary Increment, CPI & Unemployment

6 6.3

7.8 8.3 7.99 9.2 9.2 9

5

3

67 7.5

5.9

3.93 2.9 2.8 2.8 2.6

6.56

3 2.8 2.93.2 3.74.7

3.6 3.7 3.4 3.7 3.5

7 7

43.5 3.5

6.3

4.4

4.5

0

2

4

6

8

10

12

14

16

18

20

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

(e)

2001

(f)

GDP(%)

Average Salary Increment Unemployment CPI

5.4 -7.59.59.58.38.9 9.2 9.7 8.7 7.8 5.4 5.8 7 5 GDP(%)

2002

(F)

Page 75 of 100

Determination of Annual Increment using the performance – Annual Increment Matrix

This matrix combines the average annual increment of 7% with the compa-ratio range of

0.75 to 1.30.

Performance Rating Descriptions

Compa Ratio

<0.75 0.76-0.88

0.89-0.96

0.97-1.04

1.05-1.12

1.13-1.30

>1.31 Average

Performance Rating



5 Distinguished

10 9 9 9 8 8 7

10.5



4 Commen

dable 9 9 8 8 7 7 6

8.5



3 Compet

ent 9 8 8 7 6 6 6

6



2 Adequat

e 5 4 4 4 3 3 3

3.5


Consistently fail to meet expectations and

1 Unsatisfactory

0 0 0 0 0 0 0

0

Page 76 of 100

standards in most areas

Page 77 of 100

The best practice model for annual increment decision Most organizations want to recognize performance

It is usually an HR objective that superior performers must be rewarded appropriately

It seems logical that inflation and the prevalent market practice on annual increment be significant considerations in setting the annual increment policy.

In summary, the factors influencing annual increment decision are :-

Prevalent market

practices

Annual

Increment

Value

Organisation

business

performance

Individual’s

performance

Annual increment communicated to

employees as an indicator of

individual performance and

organization performance

Inflation

Predicted future

business

conditions

Determination of

average annual

increment

Page 78 of 100

Exercise 5.4 How to fill up the Annual Increment Matrix

Performance Rating Descriptions

Compa Ratio

<0.75 0.76-0.88

0.89-0.96

0.97-1.04

1.05-1.12

1.13-1.30

>1.31 Average

Performance Rating



5 Disting

uished



4 Commendable



3 Compet

ent



2 Adequa

te


Consistently fail to meet expectations and standards in most areas

1 Unsatisfactory

1. Insert the anchor Value (Performance Rating of 3 and Compa Ratio of 0.97-1.04) by using the Average Market

Increment Practice

2. Fill up the rest of the matrix with figures that you feel will be motivating for superior performers and manageable within the company's budget.

Page 79 of 100

Employee HR103 has a compa

ratio of 3.23 based on the

current salary scale but only

1.20 when compared to other

companies’ practice.

This shows that the current job

salary scale is unmatched with

market practice.

Example of Increment Calculation:

Intern

al

Co

mp

arison

Extern

al

Co

mp

arison

N

o

Dep

artmen

t E

mp

loyee

Nu

mb

er

Nam

e

Positio

n

Cu

rrent

Co

Grad

e

Mark

et

Job

Grad

e

Ag

e P

erform

anc

e Ratin

g

Con

tractual

Bonu

s (# N

o

of M

on

ths)

An

nu

al

Base S

alary

(RM

)

Co

Com

pa

-ratio

An

nu

al

Mark

et M

edian

(RM

)

Mark

et

Com

pa

-Ratio

Incr

(%)

Pro

posed

(An

nu

al R

M)

1

HR

1

1

A

GM

HR

G

3

10

52

2

0

252

,00

0

3.2

3

210

,00

0

3

.00

259

,56

0

2

HR

2

2

B

Sen

ior

Man

ager

G3

8

50

2

0

145

,20

0

1.8

6

132

,00

0

3

.00

149

,55

6

3

HR

2

2

C

Sen

ior

Man

ager

G1

7

48

1

0

96,0

00

2.5

4

96,0

00

0

96,0

00

4

MIS

134

D

Man

ager

G3

7

37

1

0

78,0

00

1.0

0

78,0

00

0

78,0

00

5

Sales &

Mark

eting

23

E

Man

ager

G3

7

41

2

0

66,0

00

0.8

5

66,0

00

4

.00

68,6

40

6

Ad

min

3

4

F

Ad

min

M

anag

er G

3

7

43

0

2

60,0

00

0.7

7

60,0

00

0

60,0

00

7

Ad

min

1

4

G

Sen

ior

Man

ager

G3

6

43

2

0

120

,00

0

1.5

4

120

,00

0

3

.00

123

,60

0

8

Fin

ance

3

5

H

Man

ager

G1

5

52

1

0

84,0

00

0.7

3

84,0

00

0

84,0

00

9

Pro

du

ction

67

I M

anag

er G

7

2

37

3

0

36,0

00

0.9

5

36,0

00

7

.00

38,5

20

Page 80 of 100

Exercise Determination of Annual Increment Determine the proposed salary increment and new compa ratio for the following positions:

Company Name Position Salary

Job Points

Job Grade

Performance Rating

Market Median

Market CR

Proposed Incr %

Proposed Salary

New CR

ABC General Manager 17,300 9 5

ABC Finance Executive 1,850 1 3

ABC Marketing Manager 4,000 5 2

ABC Engineer 2,100 1 2

ABC Senior Manager 7,200 6 3

1. Based on

Market Practice

range

2. Based on

Annual

Increment Model

3. Add current

salary with

Increment %

4. Calculate

New CR

Page 81 of 100

Considerations for handling discrepancy between Current Salary and Appropriate Salary In correcting the discrepancy between the employee’s individual salary position as determined by job grades and performance level, as compared with current salary, it seems reasonable to keep in view the following factors:

Are people occupying positions that are not appropriate with their expected career level (professional qualifications). What is their relative performance level and potential for higher level performance. This consideration should lead to movements – transfers and promotions or at least counseling

Bearing in mind past practices (culture of organization), to what extent can salary increase be “suspended “ till “acceptable level of performance is demonstrated.

Are there opportunities for employees to participate in programmes for performance improvement (such as job related training and other development) activities.

What is the time span available to the organization in attempts to bring salaries within acceptable salary

ranges.

Page 82 of 100

Communications Organizations differ widely on how much information they communicate about their reward systems:

Some companies communicate grades and salary scales and all process information i.e. how jobs are evaluated, how salary scales are detrmined, etc. Job Points of positions are usually not revealed.

Some companies do not have grades, they only reveal salary scales and the individual’s salary

Some companies reveal the salary of the individual only

Open systems put considerable pressure on organizations to do an effective job of administering rewards. Policies such as merit pay/increase are difficult and

time consuming to defend. Many companies want to spend little time in administering but still want the merit system practice secrecy, although secrecy

in turn may limit the effectiveness of the merit pay plan.

Page 83 of 100

Total Compensation Architecture

The kind of rewards that organizations give to individuals can vary widely. Money can come in many forms – base salary, fixed allowance (housing allowance), and other cash benefits. Organizations can

choose to reward people almost exclusively with cash, down playing fringe benefits, and status symbols. The choice of what form of rewards to give the individuals needs to be driven by a clear feeling of what

type of climate the organization wants. The following is an example overall compensation architecture for salary, benefits and incentives

Market Practice Desired Current compensation

practice of most organisations Ideal Business related practice?

60%

25%

15%

50%

40%

10%

?

?

?

SALARY

BENEFITS

INCENTIVES

Incentive Schemes (Key Features) Taking a leading position on compensation and publicizing it can contribute to an organization,

being seen as the best company to work for in the industry. This desirable effect can also discourage employees from looking elsewhere, because they perceive it as unlikely that they will find a better paying company elsewhere.

If the ‘rates are the best’ and the corporation pays for performance very significantly then the feeling among employees would be that the organization ‘demands the best’ gets the best and will tolerate only the best. This practice develops a culture of organization excellence and commands significant respect for the organization.

However, there are major challenges with implementing a strategy of being a leading payer in the

industry

Before the Incentives are designed, it is critical that Key Success Factors of the business are appropriately determined. It is also important that the schemes be able to integrate all staff.

We need to be able to measure and reward Organization Performance as well as Team and Individual Performances. This can be done systematically by first determining the Key Performance Indicators for the business, then the major teams, then the individuals.

Page 84 of 100

Types of Incentive Schemes The Incentive Schemes proposed can been categorized into two: 1. Short Term Strategies – to motivate employees to produce short term results e.g. Revenue, Profits, Cost

objectives etc 2. Long Term Strategies – to motivate employees to build and develop the organization to achieve future goals

and objectives e.g. Five year Return on Capital Employed target etc The role of compensation management demands strategic business thinking. Don’t get stuck with particular, out dated human resource thinking on procedures. Keep in touch with the business aspirations of the organisation. Be creative. Seek to gather information from anywhere. Manage expectations and deliver business results.

Page 85 of 100

Models for Performance Incentive – PRODUCTION related

1. Fixed Salary Proportion (Fixed Personal, Variable Team)

Performance Incentive = Fixed Quantum + Example: Weekly Bonus Pool Staff strength Monthly basic salary per employee

RM 40,000 (refer to table below) 360 RM 500

Fixed Quantum per week = RM 100 x 360 employees Balance sum in Pool Equivalent month bonus (after 4 weeks) Cash bonus per employee

= = = = = =

RM 36,000 RM 40,000 - RM 36,000 RM 4,000 RM 4,000 x 4 weeks = RM 16,000 RM 44.44 per month RM 533 per year

Team Target Achievement Weekly Bonus Pool

5 4 3 2 1

RM 48,000 RM 44,000 RM 40,000 RM 36,000 RM 36,000

Balance Sum in Bonus Pool

Monthly basic payroll

This can be determined by management using any

available measure

E.g. % of productivity, % of sales, % of margin,

% of cost savings etc.

Page 86 of 100

Models for Performance Incentive 2. Two-tier Multiplier (Variable Personal, Variable Team)

Performance Incentive = Weekly Personal Target Achievement + (Personal Target Achievement x Team Performance Multiplier)

Personal Target Achievement Weekly Incentive

5 4 3 2 1

RM 120 RM 110 RM 100 RM 90 RM 80

Personal Target Achievement

Monthly Incentive Bonus Multiplier Team Target Achievement

5 4 3 2 1

RM 120 RM 110 RM 100 RM 90 RM 80

x

1.0 0.75 0.5

0.25 0

5 4 3 2 1

Example:

Personal Target Achievement Weekly Incentive Bonus

4 RM 110

Personal Target Achievement Monthly Incentive Bonus Multiplier Team Target Achievement

4 RM 110 x

0.25 2

Employee incentive = RM 110 per week

= RM 440 per month

Cash bonus per employee = RM 110 x 0.25 per month

= RM 27.5 per month

= RM 330 per year

Page 87 of 100

Models for Performance Incentive 3. Team Ratio Plan (Variable Personal, Fixed Team) Performance Incentive = Weekly Team Ratio x Personal Target Multiplier The management has to fix the Team Ratio for each Team at the beginning of the month. The Team Ratio can be any performance indicator that the management wants to track in a particular team or line e.g. Attendance, Reject Rates, Punctuality etc. The objective of this plan is to ensure that the employees personally match up to the performance of the team in order for any incentive payout to happen.

Team Ratio (attendance)

Weekly Incentive per employee Multiplier Personal Ratio (attendance)

100% 95% 90% 85%

< 85%

RM 170 RM 150 RM 120 RM 100 RM 75

x

1.5 1.25 1.0

0.75 0.5

100% 95% 90% 85%

< 85%

Example:

Team Ratio Weekly Incentive Bonus Multiplier Personal Ratio (attendance)

90% RM 120 x

0.75 70%

Incentive per

Employee = RM 120 per week x 0.75

= RM 90 per week

= RM 360 per month

Page 88 of 100

SHORT TERM Incentives for SALES

Bonus percentage

Bonus % of Base Salary / Midpoint

Branch Branch Manager

Individual Parts Service

Distinguished 30% 25% 20%

Target 20% 15% 10% Threshold 10% 7.5% 5%

Branch Manager Example Base Salary:RM40,000 Performance Measure

Weight Threshold 7.5%

Target 15%

Distinguished 25%

Total Assets 25% Objective: Payout:

RM470,000 750

RM500,000 1,500

RM550,000 2,500

ROA 25% Objective: Payout:

Income 25% Objective: Payout:

Expenses 10% Objective: Payout:

Personal 15% Objective: Payout:

Total 100% RM3,000 RM6,000 RM,10,000

Page 89 of 100

Architecture for Influencable Results incentive 2 – tiered plan

Tier 1: Local (Direct influencable results)

Tier 2: Next level up

Region

Branch Branch Branch Branch

Function Function Function

Tier 1

Tier 2

If we take the Sales function for example, the Tier 1 performance criteria would be Sales Volume or Revenue and the Tier 2 criteria will be Branch Profitability. Some examples of Measurable Criteria:

Revenue Local Gross Profit Local Net Profit Before Tax Cash Management The incentive payout percentage for the Tiers and their respective Criteria cannot be equal. The Relative Importance of each of the criteria would also be differ from Branch to Branch depending of Location, Year and Services Offered. As a summary, we have to recognize that priorities are different, they change overtime and the incentive plans have to reinforce business annual plans.

Page 90 of 100

Example of using different Weightings for various locations and branches. Functional

Criteria Region

1 Region

2 Branch

1 Branch

2 Sales Service Parts

Revenue 30 35 45 30 45 25 20

Gross Profit

40 40 25 45 30 45 35

NBIT 15 15 10 10 5 25 15 Stocks in hand

15 10 20 15 20 5 30

100 100 100 100 100 100 100

There should ideally be around 3 to 6 criteria and each criteria should not weigh more than 40-50%

Further split weightings

E.g. Revenue weigthing in country X = 40%; of which 25% Product A and 15% Product B

Page 91 of 100

Criteria Matrix Construction: An example

Weight Adequate Performance

Meets Target

Superior Distinguished

Criteria 1 40 4.8% 10% 13.2% 16.8%

Criteria 2 30 3.6% 7.5% 9.9% 12.6% Criteria 3 15 1.8% 3.75% 4.95% 6.3%

Criteria 4 15 1.8% 3.75% 4.95% 6.3%

Regional Manager 70% local 30% tier 2 (national)

Branch Manager 80% local 20% tier 2 (regional)

Functional Team Leader 90% local 10% tier 2 (branch)

2 Tier Example

Branch Manager earns locally: 10% from Criteria 1 7.5% From Criteria 2 1.8% From Criteria 3 4.95% from Criteria 4 24.25% x 80% = 19.40%

And from Region 13.2% from Criteria 1 7.5% From Criteria 2 4.95% From Criteria 3 1.80% from Criteria 4 27.45% x 20% = 5.49%

Total = 19.40% + 5.49% = 24.89%

Page 92 of 100

Incentives for LONG TERM RESULTS - SALES Milestones (deferred incentive) to ensure tracking and monitoring of Long Term growth Milestones

Time Periods

For example, a new Start-up branch may want conserve cash for the initial years and pay out to staff after the initial years of accumulation once the Branch operating revenue and costs have

stabilized Pay Branch

Group

Time

As a sample strategy, the Branch may only pay out 50% of the annual bonus and reserve the other 50% as deferred until a strategic milestone has been achieved by the company, e.g. 200 car sales per moth for a period of 6 months.

Page 93 of 100

Long Term Payout Matrix Example: A long term incentive performance achievement matrix established to measure achievement at the end of five years.

E.g. Branch Manager

Unit Sales Target Achievement Payout of Target Long Term Award as a percent of base

salary

2x

200% 400% 1000%

150% 200% 500%

X

100% 100% 250%

75% 50% 175% 0.5x

50% 25% 88%

Another example of using Return On Investment (ROI) as a performance measure to adjust pay matrix

ROI ROI as % of target % adjustment in award 36% 150% 200%

30% 125% 140% 24% 100% 100%

18% 75% 75%

12% 50% 50%

Leverage Deferred “Accumulated Bonus/Incentive” against long term performance

Achievement of Long term performance target

Multiply Accumulated Bonus by factor

150% 1.5

130% 1.3 110% 1.1

100% 1.0 90% 0.9

80% 0.8

Page 94 of 100

Long-Term Incentive Plans (LTIP) LTIP Description

Stock Options*

An award granting the right to purchase a specific number of shares of stock at a predetermined (grant) price. Grants become exercisable once they are fully vested (typically three to four years from date of grant). The value of stock options depends on the number of stock awarded and their subsequent appreciation – the exercise price less the grant price. Of the companies that grant stock options, a majority grant awards annually

Performance Plans

Examples include performance shares and performance cash. In any performance plan, a reward is contingent upon how well performance objectives are achieved over a given performance cycle – typically three to five years. Most companies who use a performance plan grant awards annually. The value of the award depends on the plan type: - Performance Shares – The amount of stock awarded depends on the achievement of specific performance objectives. The value depends on the stock price at the end of the performance cycle. - Performance Cash – A specific cash opportunity expressed in Ringgit (RM) or a percentage of base salary or cash compensation that is tied to the achievement of performance objectives

Restricted Stock*

A Restricted Stock Award Share is a grant of company stock in which the recipient's rights in the stock are restricted until the shares "vest" (also know as a "lapse in restrictions"). This period of restrictions is called a vesting period. Once the vesting requirements are met the employee will own the shares outright and may treat them as they would any other share of stock in their account.

Phantom Stock

Typically cash-based equivalent of restricted stock or stock options. Most companies that use phantom stock are subsidiaries of public companies, are privately held, or are companies that do not have equity available for use in an incentive program. The value of phantom stock can be equal to the value of the business, determined by appraisal, formula, or other means, or can be tied to other criteria (like performance plans)

*Note: How does a restricted stock award differ from a stock option grant? Both have a vesting period. The difference is at the end of the vesting period. When a stock option vests, you have the option of purchasing or not purchasing the stock at a specific price (the strike price). You do not own any company stock until you exercise the option and purchase the stock. As soon as you purchase it, you can do anything you want with it, including sell it. When a restricted stock award vests, you own the stock and you can do whatever you want with it.

Adapted from: “Using Long-TermIincentives to Retain Top Talent” by Conly, Lassonde, and Larson; The Talent

Management Handbook

Page 95 of 100

Benefits Survey: Example

No

.B

en

efits

SE

RV

ICE

MA

NU

FA

CT

UR

ING

&

AU

TO

MO

TIV

E

CO

NS

TR

UC

TIO

NA

UT

OM

OT

IVE

&

DIS

TR

IBU

TIO

N

FIN

AN

CIA

L S

ER

VIC

ES

Mark

et P

ractic

eR

eco

mm

en

de

d P

ractic

e

1W

ork

ing d

ay

-5 1

/2 d

ay w

eek-5

1/2

day

week

-5 1

/2 d

ay w

eek-5

1/2

day

week

-5 1

/2 d

ay w

eek65

% o

f com

pan

ies hav

e a five d

ay w

ork

week

-5 1

/2 d

ay w

eek

2W

ork

ing h

ou

rs -N

ot exceed

ing 4

8 h

ours p

er week

-Not exceed

ing 4

8 h

ours p

er week

-Not exceed

ing 4

8 h

ours p

er week

-No

t exceedin

g 48 h

ours p

er week

No

t exceedin

g 48 h

ours p

er week

(8.3

0 a.m

- 5.3

0 p

.m)

Office staff w

ork

betw

een 3

9-4

0 h

ou

rs per w

eek

in 7

2%

of co

mp

anies

Not exceed

ing 4

8 h

ours p

er week

(8.3

0 a.m

- 5.3

0 p

.m)

3P

rob

ation P

eriod

6 m

on

ths

3-6

mon

ths

3-6

mon

ths

6 m

on

ths

-3 to

6 m

ths d

epen

din

g on

qu

alification

& exp

erience

6 m

onth

s-3

to 6

mth

s dep

end

ing o

n q

ualificatio

n &

experien

ce

-Exten

sion

of 3

-6 m

ths

-Exten

sion

of 3

-6 m

ths

4N

otice o

f Term

inatio

n3 m

onth

1 m

onth

1 m

on

th3

mon

thF

or S

enio

r Mgm

t : 3 m

onth

s1 - 3

mon

ths

For S

enio

r Mgm

t : 3 m

onth

s

Fo

r oth

er Exec : 2

mo

nth

sF

or o

ther E

xec : 2 m

onth

s

5A

nn

ual L

eave

Th

e pro

visio

n o

f ann

ual leav

e ranges

from

19-3

0 d

ays. T

he m

ost co

mm

on

practice is as fo

llow

s:

The p

rovisio

n o

f ann

ual leav

e ranges

from

14-2

7 d

ays. T

he m

ost

com

mo

n p

ractice is as follo

ws:

The p

rovisio

n o

f ann

ual leav

e is as

follo

ws:

The p

rovisio

n o

f ann

ual leav

e ranges

from

14

-23

day

s. Th

e mo

st

com

mo

n co

mp

any

practice is as

follo

ws:

Less th

an 5

years: 1

8 d

ays

5 to

10

years : 2

0 d

ays

More th

an 1

0 y

ears : 24 d

ays

84

% o

f com

pan

ies vary

annual leav

e entitlem

ent

by

either y

ears of serv

ice & m

anagem

ent lev

el.Th

e

practice o

f com

pan

ies is as follo

ws:

Less th

an 5

years: 1

8 d

ays

5 to

10 y

ears : 20 d

ays

Mo

re than

10

years : 2

4 d

ays

< 5

yrs o

f service : 2

2 - 2

4 d

ays

Fo

r Sen

ior M

gmt: 2

7 d

ays

Sen

ior M

gt: 21

-28

day

s<

5 y

rs of serv

ice - 20

day

s5-1

0 y

rs : 18-2

1 d

ays

>5 y

rs of serv

ice : 25 - 3

0 d

ays

Fo

r oth

er exec. : <5y

rs : 14 d

ays

Oth

er Exec: 1

4-2

1 d

ays

> 5

yrs o

f service - 2

3 d

ays

>1

0 y

rs: 21

-25 d

ays

<5

yrs : 1

4 d

ays

>5

yrs : 1

6 d

ays

71

% o

f com

pan

ies allow

emp

loy

ees to accu

mulate

their u

nu

sed leav

e subject to

restriction

s

6M

aternity

Leav

e6

0 d

ays (u

p to

5 su

rviv

ing ch

ildren

)60 d

ays (u

p to

5 su

rviv

ing ch

ildren

)6

0 d

ays (u

p to

5 su

rviv

ing ch

ildren

)6

0 d

ays (u

p to

5 su

rviv

ing ch

ildren

)60

day

s for each

child

(inclu

din

g Pub

lic Holid

ays)

83

% o

f com

pan

ies grant 6

0 d

ays m

aternity

leave

60 d

ays fo

r each ch

ild (in

cludin

g Public H

olid

ays)

7P

ilgrimage L

eave

3 w

ork

ing w

eeks fo

r com

pleted

service o

f 10 y

ears.

Nil

30 w

ork

ing d

ays fo

r com

pleted

service o

f 10 y

ears

15-2

1 d

ays fo

r com

pleted

service o

f

10 y

ears.

After 1

0 y

ears wo

rkin

g in th

e com

pan

y fo

r a perio

d

of 3

week

s

50

% o

f com

pan

ies pro

vid

e unp

aid leav

e for

emp

loy

ees to go

on p

ilgrimage

After 1

0 y

ears wo

rkin

g in th

e com

pan

y fo

r a perio

d

of 3

week

s

BE

NE

FIT

S C

OM

PA

RIS

ON

(SE

CT

OR

BA

SE

D)

Page 96 of 100

Benefits Survey: Sample Components Working Days Probation Period EPF Employers Contribution (%) Employees Contribution (%) Retirement Age Retirement Scheme/Plan/Pension LEAVE Annual Leave (per annum) Marriage Leave Maternity Leave (Female) Paternity Leave Examination Leave Pilgrimage Leave Compassionate Leave (per annum) Paid Medical Leave (per annum) Prolonged Illness Leave Leave without Pay Leave Passage MEDICAL Outpatient Medical Visit Hospitalisation & Medical Treatment Maternity - Delivery Dental Treatment Optical MEMBERSHIP i) Professional ii) Club MILEAGE CLAIMS DEATH/FUNERAL BENEFITS NEW AGE BENEFITS i) Flexi Time/Work from Home ii) Handphone iii) Laptops/PCs iv) Gym membership v) Others

INSURANCE includes "Family Coverage" Group Personal Accident Group Term Life Other Insurance Coverage provided (please specify) What other Insurance Coverage not included in the current plan would benefit the organisations employees? LOAN SCHEME (● Indicate types of loan, eligibility, amount granted, interest rate, maximum repayment period, etc) (eg: Housing Loan, Car Loan, personal loan,etc) ALLOWANCES (● Indicate types of allowances, amount, etc according to eligibility) (eg: Entertainment allowance, Housing allowance, shift allowance transport allowance, etc) BUSINESS TRAVEL i) Air Travel Domestic International ii) Accomodation Domestic International iii) Subsistance Allowance Domestic International MEMBERSHIP i) Professional ii) Club TRANING BENEFITS I) Which Training and development programs do you provide for the employees of the organisation? (across the board) (Please Tick all the applicable choices) II) Do you have a Talent Management program as part of your organisations retention/motivation strategy? III) Is your organisation open to look at up-to-date tools and methodologies to enhance your organisations commitment in "caring for its employees"?

Page 97 of 100

GEN Y

Generation Y employees' ranking of job considerations in order of importance, with 10 being most important

Salary 9.05

Benefits 8.86

Opportunities for advancement 8.74

Company location 8.44

Company leadership 7.95

Company reputation/brand recognition 7.56

Job title 7.19

In-house training programs 6.95

Tuition reimbursement 6.44

Diversity 6.07

Company's philanthropic efforts 6.06

Note: Survey of 1,007 college-educated employees ages 21 to 28.

Source: Robert Half Technology

http://email.workforceonline.com/cgi-bin2/DM/y/h2bC0GGgSG0G6T0DDsx0EP

Page 98 of 100

Sample H&S Provider Comparison Sheet (page 1) H&S PROVIDER COMPARISON CHECKLIST

Proposed Current

1

c

} In-house Yes Using TPA

} 24 hours/7 days Yes ?

} Toll Free Line Yes ?

} Medical Staff 1 Medical Doctor, 3 nurses ?

} Isssuance of Guarantee Letter Yes

} Emergency Assistance Yes

} Benefit enquiries Yes

} SMS GL issuance notification Yes

} Telephone system monitor service levels & turnaround time

e Yes, Provider issue Guarantee Letter Yes

f Single (Platinum) card for access to GP,

Specialist and Hospitals

g

} Comprehensive analysis on

medical claims data and

benchmarking against industryTri annually

} Ad-hoc reports yes upon request

h Insurer and Administrator under one roof

i

j

} E-Banking claim reimbursement

into employee's bank accountYes (MEPS Network)

} E-Notification (notify employee via

internet e-mail address on status

of member claim)

Yes

k

} Member details Yes

} Reports, claims & billing details Yes

} Policy details, plans & benefits Yes

l

} Member's particulars Yes

} Claim status and details Yes

m Yes Yes

n Yes

o Yes

Client Portal - Access to company data by

HR

Disaster Recovery Plan / Business

Continuity

Member Portal - Access to Personal data

by member

Dedicated Manager to manage client

Health Talk

ADMINISTRATIVE SERVICES

Call Centre

Cashless Admission to hospitals

Special cards for VVIP

Reports

One Stop Center

Financial Back-Up

E-Solutions

Page 99 of 100

Sample H&S Provider Comparison Sheet (page 2)

2

a waived ?

b waived ?

c waived ?

d As Charged, subject to overall limit,

Covered under H&S-Prior to admission

60 days

90 days

e As Charged, subject to overall limit,

Covered under H&S-Days from discharge

date 60 days

31 days

f As Charged, subject to overall limit

g RM80 RM80

h Covered after 6 hours

i Members have to pay only the difference

in Room & Board charges. No co-

sharing of 20% on overall bill

Co-sharing 20% on the overall bill

j yes, Post Retirement Plan & I-Health

k Covered

l Covered under Hospital Miscellaneous

m Covered

n Covered

o Covered

p No cap-pay As Charged (Pre-negotiated

with hospital)

q Not required

3

Medical department with in-house

doctors and nurses

Volume Purchasing

Processing Turn Around Time (TAT)

} Member Claims 21 days

Bill Itemisation & Review

4

a Covered worldwide up to RM H&S limit,

for member who is travelling for not more

than 90 days. If more than 90 days,

please declare.

5

a

b No of members

Diagnostic X-Ray & Lab test

Medical Report Fee

Portable insurance plans

OVERSEAS COVERAGE

Hospitalization Overseas Coverage

(Insurance)

Personal Health Declaration

MEDICAL COST MANAGEMENT / INFLATION

In-hospital Physician's Visit

Related Investigative tests (ie

endoscopy/CT Scan/Stress test)

OTHERS

No of corporate clients-Employee Benefits

Nursing care charges

Operations done in one surgey

Known conditions

Post-Hospitalization

Room & Board upgrade

Daycare Procedure

Pre-existing conditions

Hospitalization & Surgical

Pre-Hospitalisation

a

Initiatives

30 days waiting period

Hospital Registration Fee

Specified Illness

COVERAGE

Page 100 of 100

Sample H&S Provider Comparison Sheet (page 3)

3

Medical department with in-house

doctors and nurses

Volume Purchasing

Processing Turn Around Time (TAT)

} Member Claims 21 days

Bill Itemisation & Review

4

a Covered worldwide up to RM H&S limit,

for member who is travelling for not more

than 90 days. If more than 90 days,

please declare.

5

a

b No of members

OVERSEAS COVERAGE

Hospitalization Overseas Coverage

(Insurance)

MEDICAL COST MANAGEMENT / INFLATION

OTHERS

No of corporate clients-Employee Benefits

a

Initiatives