Budget 2021: What Is There For The M40?
What do you get in the next budget?
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Just like the B40 income group, the Middle 40 (M40) will be given some assistance as announced in Budget 2021.
We’ve listed down below the aid given by the government to help the M40.
If you’re not sure whether you’re a B40 or M40, check out this article:
Bantuan Prihatin Nasional
The government will help households of a monthly income between RM4,001 to RM5,000. This category will receive RM500 for one child and RM750 for two or more children.
Decrease in income tax rate
The Government agreed to reduce income tax rates for individuals by 1 percentage point for the taxable income range between RM50,001 to RM70,000 which is expected to benefit 1.4 million taxpayers.
Tax exemption and reliefs
For period of 2 years of assessment, income tax exemption limit for compensation for loss of employment will be increased from RM10,000 to RM20,000.
Income tax relief limits for lifestyle is increased from RM2,500 to RM3,000 for sports-related expenses including sports competition participation fees. This is also extended to cover electronic newspaper subscriptions.
Tax relief up to RM8,000 for families under the National Education Savings Scheme is continued until the year of assessment 2022.
Targeted Payment Assistance
The M40 income group can also apply for assistance for loans up to RM150,000 starting December 2020.
- Postpone monthly installments for 3 months
- 50% monthly installments reduction for 6 months
Borrowers only need to make a self-declaration or self-declaration income reduction to get repayment assistance.
Employees Provident Fund
Starting January 2021 minimum contributions for EPF have been cut from 11% to 9% for 12 months.
EPF contributors can take out RM500 monthly from their i-Lestari Account for 12 months. The total is RM6,000.
They can also take RM500 monthly from Account 1 for 12 months. The total is RM6,000.
Job Search Allowance
Starting January 2021, Social Security Organisation (SOCSO’s) allowance period will be extended for three months for:
- 80% of salary for the first month
- 50% for the second to sixth months onwards
- 30% for the last three months
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