Wednesday, September 21, 2011

Malaysia Part Timers Get EPF and Socso Contributions




Many of us still didn't know about the new ruling for part timers in Malaysia. Part timers now enjoy better benefits since 1 October 2010. I only found out recently and thought of sharing it here.


Employers must make EPF and Socso contributions for their part-time employees as long as they work between 30% and 70% of the number of hours put in by permanent staff. This means if a permanent employee official working hours is eight hours a day, part timers who put in between 2.5 hours and 5.5 hours qualify as part-time employees to enjoy this benefits.


This is regardless of how much a part timer get pay per hour. As long as you fulfill the 2.5 hours requirement, employer must make EPF and Socso contributions. Of course, your salary or wages will also be deduct for your personal EPF and Socso contributions.


The number of hours can also be accummulated over several days in a week as long as the arrangement is agreeable to both parties. This means a part timer can work few hours  within the week and accumulate all the hours of the week to be eligible for this benefits. This include working on weekends.


"The Employment Act has been amended to stipulate who a part-time worker is. We hope employers will not plead ignorance from now on," Human Resources Minister Datuk S Subramaniam told reporters during a press statement.


At present, employers contribute 12% of their employees' basic salary every month to the EPF while the employee chips in 11%. As for Socso, employers pay 1.75% of the worker's salary while the worker pays 0.75%.


According to Human Resources Minister Datuk S Subramaniam, employees could have two sources for their EPF and Socso contributions, and it's nothing wrong as it's a win win situations for employer and part timer. Part-time workers would be given salaries and other relevant benefits, such as EPF contributions, Socso coverage and medical entitlements, on a pro rata basis.


Employers have the flexibility to decide if they want to calculate the number of hours on a daily, weekly or even monthly basis.


Besides that, employers would have to contribute EPF and Socso contributions for part timers who work based on projects. As long as a part timer is paid RM10 per project, they are entitled for this benefits. I believe this is the one that most of us didn't know.