📢 2025 Malaysian Payroll and HR Updates: Are You Ready?
As we step into 2025, it’s time to ensure your HR and payroll processes are aligned with the latest regulations. Here’s a quick checklist to ensure your business is ready and remains compliant:
1️⃣ Minimum Wage Adjustment: Are You Fully Prepared?
The minimum wage has increased to RM1,700, with a six-month grace period for small businesses to comply.
✅ Action: Double-check that all payroll calculations (including allowances and overtime) align with the new wage standard.
2️⃣ Mandatory EPF Contributions for Non-Citizen Workers (Not implemented yet)
Non-citizen employees are now required to contribute to EPF.
✅ Action: Update payroll systems and inform employees about their new deductions and benefits.
3️⃣ Tax Relief Extensions
Nursery/kindergarten fee relief (RM3,000) extended through 2027, while Private Retirement Scheme (PRS) relief extended to 2030, with an 8% withholding tax on non-permitted withdrawals.
✅ Action: Encourage employees to take advantage of these extended benefits.
4️⃣ Expansion of Sales and Service Tax (SST)
Effective May 2025: SST now includes more B2B services and non-essential goods.
✅ Action: Review transactions and ensure SST compliance to avoid penalties.
Pro Tips for HR Professionals:
🔍 Audit Payroll Systems: Ensure updates reflect new minimum wage, tax structures, and EPF requirements.
📢 Communicate with Employees: Keep your team informed about changes to their pay and benefits.
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