COVID-19 MALAYSIA

STATUTORY & FINANCIAL AID IMPACT TO

EMPLOYER & EMPLOYEE

Understanding of Economic Stimulus Package Offered

& Movement Control Order By the Malaysian’s Government

31 March 2020

Impacts on Employee

Impacts on Employee

CATEGORY ITEM REFERENCE LINK

PTPTN Deferment of PTPTN loan repayment for all borrowers for 6 months.

https://www.ptptn.gov.my/makluman-bayaran-balik-side/penangguhan-bayaran-balik-pinjaman-ptptn-akibat-penularan-covid-19

SOCSO SOCSO's early benefit payment.

SOCSO has revised the pension and benefit payments schedule to insured persons and their dependants.

Monthly benefit payment will be credited earlier, beginning this month.

1) Invalidity pension / Survivor's pension2) Dependant's benefit3) Periodic Permanent Disablement Benefit4) Constant-Attendance Allowance

https://www.perkeso.gov.my/index.php/en/pengumuman

Impacts on Employee (Cont’d)

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SOCSO Implementation of Employment Retention Program (ERP) for employees who received unpaid leave notice. ERP is an immediate financial assistance provided for employees who have been instructed to take no paid leave by their employers who are economically affected by Covid-19 pandemic.

https://www.perkeso.gov.my/index.php/en/kenyataan-media

Skills Training Programme.

SIP PLUS 600 - Temporary financial incentive worth RM600 a month for a maximum of 3 months for Insured Persons with Loss of Employment and are registered with EIS but do not meet the Contribution Qualifying Conditions (CQC).

EPF Reduction of statutory contribution rate for employees from 11% to 7%.

https://www.kwsp.gov.my/-/reduction-of-statutory-contribution-rate-for-employees

Impacts on Employee (Cont’d)

CATEGORY ITEM REFERENCE LINK

EPF Under the “i-Lestari Withdrawal” scheme, eligible EPF members can withdraw up to MYR500 per month from Account 2 for a period of 12 months starting from 1 April 2020 until 31 March 2021. This is open to all members aged below 55 years old.

https://www.kwsp.gov.my/-/basic-faq-i-lestari-withdrawal

LHDN Submission timeline of Return Form Filing for year 2020 will be extended.• Form BE - Extended to 30.06.2020• Form B - Extended to 31.08.2020• Form M (Non-business) - Extended to 30.06.2020• Form M (Business) - Extended to 31.08.2020

http://www.hasil.gov.my/bt_goindex.php?bt_kump=10&bt_skum=1&bt_posi=1&bt_unit=1&bt_sequ=322&cpage=0

http://lampiran2.hasil.gov.my/pdf/pdfam/faq_2.pdf

Impacts on Employee (Cont’d)

CATEGORY ITEM REFERENCE LINK

LHDN Tax incentive for donation to tabung Covid-19. In order to encourage donation from the public, tax deduction will be given for donation made to the following fund for the year of assessment 2020.

http://www.hasil.gov.my/bt_goindex.php?bt_kump=6&bt_skum=1&bt_posi=2&bt_unit=1&bt_sequ=522

http://lampiran1.hasil.gov.my/pdf/pdfam/Media_LHDNM_26032020_INSENTIF_POTONGAN_CUKAI_BAGI_SUMBANGAN_KEPADA_TABUNG_COVID19.pdf

Impacts on Employee (Cont’d)

CATEGORY ITEM REFERENCE LINK

HOUSINGLOAN DEDUCTIONS

The Government welcomes the willingness of banking institutions to offer a 6-month moratorium, conversion of credit card balance to term loans and restructuring of corporate loans.

Implement a six-month moratorium on loan repayments and restructure outstanding credit card balances involving about RM100 billion starting April 1. (*Note: For those employer who has got hire purchase and housing loan deductions from employees monthly payroll, please take note.)

https://www.pmo.gov.my/2020/03/speech-text-prihatin-esp/

Impacts on Employer

Impacts on Employer

CATEGORY ITEM REFERENCE LINK

HRDF Levy Exemption for all 63 sub-sectors for six (6) months, starting March 2020 salary.

https://www.hrdf.com.my/economic-stimulus-package/

2020 Training Stimulus Package – 80% subsidy on training course fee for all registered employers.

SOCSO Wage Subsidy Programme https://www.perkeso.gov.my/index.php/en/wage-subsidy-programme

LHDN Submission timeline of Return Form Filing for year 2020 will be extended.• Form E 2019 - Extended to 31.05.2020

http://www.hasil.gov.my/bt_goindex.php?bt_kump=10&bt_skum=1&bt_posi=1&bt_unit=1&bt_sequ=322&cpage=0

http://lampiran2.hasil.gov.my/pdf/pdfam/faq_2.pdf

Impacts on Employer (Cont’d)

CATEGORY ITEM REFERENCE LINK

LHDN PCB (CP39) / CP38 payment deduction for Mar 2020 salary will be due on 30.04.2020.

http://www.hasil.gov.my/bt_goindex.php?bt_kump=10&bt_skum=1&bt_posi=1&bt_unit=1&bt_sequ=324&cpage=0

Withholding tax which falls between 18 to 14.04.2020 can be made beginning 15.04.2020 -30.04.2020.

http://www.hasil.gov.my/bt_goindex.php?bt_kump=10&bt_skum=1&bt_posi=1&bt_unit=1&bt_sequ=322&cpage=0

http://lampiran2.hasil.gov.my/pdf/pdfam/faq_2.pdf

EPF The EPF will introduce the Employer Advisory Services (EAS) programme on 15 April 2020. This service includes options for deferral of payments, restructuring and rescheduling of employer contributions.

https://www.pmo.gov.my/2020/03/speech-text-prihatin-esp/

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