UNIT 5 89
Regulatory bodies and corporate governance
a two year term where there be a representative from Ministry
of Finance, Bank Negara and professional representatives .
3. Current rate: 23% of the employee's wages of which 11% is
from the employee's monthly wage while 12% is contributed by
the employer. With effect from January 2012, the revised
employers’ statutory contribution rate will be 13 per cent
for those earning a monthly wage of not exceeding RM5,000.
Employees who are 55 years and above and earning wages not
exceeding RM5,000 will also benefit from the revised rate as
their employers are now required to contribute at 6.5 per cent
which is an additional 0.5 per cent from the current 6 per cent,
while the employees continue to contribute at 5.5 per cent.
Where the employer is a company the responsibility of ensuring
that the required contributions have been made is the
responsibility of the company directors.
4. “Account I”, stores 70% of the members' monthly contribution
“Account II”, stores 30% of the members’ monthly contribution.
Account I restricts withdrawals to the moment the member
reaches an age of 55 years old, is incapacitated, leaves the
country or passes away. Withdrawal of savings from Account II
however, is permitted for down payments or loan settlements
for a member's first house, finances for education and medical
expenses, investments, and the time when the member reaches
50 years of age.
5. Employers can access, edit and print Form A, access to Form
A: Credited contribution archive, check employees’ EPF
numbers, register new EPF members, check the Contribution
with Incomplete Information [Caruman Tanpa Maklumat
Lengkap (CTML)], calculate the dividend for employer's share
(for Government employer), check i-Akaun activities log, check
current EPF transaction activities.
Self-test 5.5
1. Socso provides social security protection by providing social
security insurance to employees in relation to occupational
accidents including those who sustained injury or death , met
with accidents in course of work , or contracted disease due to
service.
Socso only covers Malaysian workers and permanent residents.
Foreign workers are covered by the Workmen’s Compensation
Act 1952.
90 WAWASAN OPEN UNIVERSITY
BCS 202/05 Corporate Compliance Management
2. All remuneration payable in money to an employee is wages for
purposes of SOCSO contributions. This includes the payments
in form of salary, overtime payments, commissions and service
charge, payments for leave; annual , sick, maternity, rest day,
public holidays and others, allowances; incentive, shift, food,
cost of living, housing and others, including payment to an
employee paid at an hourly rate, daily rate, weekly rate, piece
or task rate is considered as wages.
However, the following payments are not considered as wages:
a. Payments by an employer to any statutory fund for employees
b. Mileage claims
c. Gratuity payments or payments for dismissal or retrenchments
d. Annual bonus
3. a. Principal employer  refers to the employer who has
employed the employee directly to work for him. The
employer undertakes the payment of wages and all the service
matters of the employee.
b. Immediate employer  refers to an employer who works for
a principal employer or undertakes a part of the work of the
principal employer by subcontract . The immediate employer
has direct control of the employees employed by him.
c. Contribution rates: A monthly contribution made by a
principalemployer for each eligible employee according to the
rates specified under the Act. The employee's share of 0.5% of
wages should be paid for coverage under the Invalidity Pension
Scheme while the employer pays 1.75% for the Employment
Injury Insurance Scheme and the Invalidity Pension Scheme.
The rate of contribution is based on the monthly wage of the
employee in accordance to 34 categories. Contributions
should be made from the first month the employee is
employed.
d. Contribution types: There are two types of contrinbution
to SOCSO. First category (Employment Injury Insurance
Scheme and Invalidity Pension Scheme). The payment of
the contribution is by both the employer and employee. The
second category (Employment Injury Insurance Scheme
Only). The payment of contributions is made only by the
employer, i.e., for an employee who is not eligible for
coverage under the Invalidity Pension Scheme.
UNIT 5 91
Regulatory bodies and corporate governance
4. Coverage of SOCSO are:
a. Periodical payments in the case of invalidity;
b. Periodical payments in the case of disablement suffered as a
result of an employment injury;
c. Periodical payments to the dependents of an insured person
who dies as a result of employment injury;
d. Payments for funeral benefit or expense on the death of an
insured person as a result of an employment injury;
e. Periodical payments to an insured person who is in receipt
of invalidity pension or disablement benefit and is so severely
incapacitated or disabled as to require the personal attendance
of another person.
Self-test 5.6
1. Income Tax Act 1967, Petroleum (Income Tax) Act 1967, Real
Property Gains Tax Act 1976, Promotion of Investments Act
1986, Stamp Act 1949, Labuan Offshore Business Activity Tax
Act 1990.
2. a. Functions of the Board
i.
To act as agent of the Government and to provide services
in administering, assessing, collecting and enforcing
payment of income tax, petroleum income tax, real
property gains tax, estate duty, stamp duties and such
other taxes as may be agreed between the Government
and the Board;
ii. To advise the Government on matters relating to taxation
and to liaise with the appropriate Ministries and statutory
bodies on such matters;
iii. To participate in or outside Malaysia in respect of matters
relating to taxation;
iv. To perform such other functions as are conferred on the
Board by any other written law;
v. May act as a collection agent for and on behalf of any
body for the recovery of loans due for repayment to that
body under any written law.