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15 things M’sian employees need to know about Budget 2020

15 things M’sian employees need to know about Budget 2020

Kirat Kaur

Last Friday (11th October) was a particularly
important day for Malaysia as Budget 2020 was tabled with a total of RM297.02 billion.

Centred around the theme ‘Driving Growth and Equitable Outcomes
Towards Shared Prosperity’, the budget was particularly keen on investing in
Malaysians from education to health and employment.

Finance Minister Lim Guan Eng announcing Budget 2020.
(Credit: Shafwan Zaidon/Malay Mail)

While you may have read about incentives for budding entrepreneurs, what about the average working Malaysian?

Fret not, we’ve gone through the entire budget and here are 15 things Malaysian employees need to know about Budget 2020.

1. Increased minimum wage

From 2020 onwards, the minimum wage at major cities will be raised to RM1,200 from RM1,100. However, the RM1,100 minimum wage remains for non-urban centres.

2. RM500 monthly incentive for employed graduates

Through Graduates@Work, graduates who have been unemployed for over 12 months will receive a RM500 wage incentive once theysecure a job. This amount will be given every month for 2 years of employment.

3. Increased maternity leave to 3 months

Probably one of the most welcome news is the increased maternity leave from 60 days to 90 days. Working mothers now have 3 months after delivery to care for their new-born and recover from childbirth. This comes into effect from 2021 onwards.

4. RM500 monthly incentive for women returning to work

Through Women@Work, the government plans to create 33,000 jobs for women who’ve left the workforce. Hence, women between 30 and 50 years old who have stopped working for over 12 months will receive RM500 for coming back to the workforce. This amount will be given every month for 2 years of employment.

5. Tax exemption extension for women returning to work

Another piece of good news for women looking to re-join the
workforce is tax exemption until 2023.

6. Withdraw from EPF for fertility treatment

A new EPF withdrawal has been announced for couples who
need the money for fertility treatments such as in-vitro fertilisation
(IVF).

7. Income tax exemption for fertility treatments

Couples who undergo fertility treatments can now be exempt from paying income tax up to RM6,000.

8. Withdraw from EPF for professional certificates

While the Employees Provident Fund (EPF) allows for savings withdrawal for education before, the scope is now expanded to certificate level qualifications, particularly in the fields related to Industry 4.0 (IR4.0) – such as automation of manufacturing processes, computers and technology.

9. Upskill with HRDF coverage for professional certifications

With a RM20 million fund, plus RM20 million matched by the
Human Resources Development Fund (HRDF), more professional certification
examinations
(in fields related IR4.0) will be covered for working
adults to upskill themselves.

10. RM350-RM500 monthly incentive for locals who replace foreign labourers

Malaysians who replace foreign workers in low skilled jobs (eg: F&B and factory work) will receive a monthly incentive from RM350 to RM500, depending on the sector.

11. Nurseries for employee’s children (civil service)

Working parents in the civil service concerned about leaving their young ones alone at home, or simply cannot afford the exorbitant fees of nurseries can now breathe a sigh of relief as government buildings will soon have nurseries.

Credit: theprettysweetlife.com

12. Employees can redeem accumulated leaves as replacement pay earlier (civil service)

Those in the civil service can now redeem their accumulated leaves
as replacement pay much earlier. Civil servants who have served at least 15
years
can cash up to 75 days of leave.

13. RM50 increase for cost of living allowance (civil service)

In line with the rising cost of living, civil servants’ cost of living allowance (COLA) will be increased by RM50 from 2020 onwards.

Credit: MEME

14. RM500 for civil service employees

Those who are working in the civil service will receive a RM500
special payment
. This is only for civil servants at Grade 56 and below.

15. Monthly RM100 incentive TVET interns/Apprentices

Those undergoing Technical and Vocational Education and Training (TVET) -such as vocational college, technical institute and polytechnic students- will receive a RM100 monthly allowance during their apprenticeships. FYI this RM100 is an addition to the existing allowance for trainees.


Now that you know what Malaysian employees will get from Budget 2020, share this article with your friends and family to learn too!

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