The Ministry of Human Resource has announced a new regulation in which effective 1st October 2010, part time workers will be able to enjoy better benefits such as EPF contributions and SOCSO coverage.
The move will benefit some 12 million existing employees as well as some 6 million latent workers comprising housewives, students, under graduates and the disabled.
With the new regulation, 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 regular staff. This means that if a regular employee puts in eight hours a day, those who put in between 2.5 hours and 5.5 hours qualify as part-time employees. The number of hours can also be accumulated over several days in a week as long as the arrangement is agreeable to both parties. This means the particular part-time employee can also work only during the weekends if he so wished.
Furthermore, the amendment was needed as there were many Malaysians who had professional qualifications and only worked on a part-time basis but did not enjoy EPF and Socso coverage.
The amount of EPF and Socso that employers would have to pay would be pro-rated. At present, employers contribute 12% of their employees' basic salary every month to the EPF while the employee contributes 11%. As for Socso, employers pay 1.75% of the employee's salary while the employee pays 0.75%.
The move will benefit some 12 million existing employees as well as some 6 million latent workers comprising housewives, students, under graduates and the disabled.
With the new regulation, 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 regular staff. This means that if a regular employee puts in eight hours a day, those who put in between 2.5 hours and 5.5 hours qualify as part-time employees. The number of hours can also be accumulated over several days in a week as long as the arrangement is agreeable to both parties. This means the particular part-time employee can also work only during the weekends if he so wished.
Furthermore, the amendment was needed as there were many Malaysians who had professional qualifications and only worked on a part-time basis but did not enjoy EPF and Socso coverage.
The amount of EPF and Socso that employers would have to pay would be pro-rated. At present, employers contribute 12% of their employees' basic salary every month to the EPF while the employee contributes 11%. As for Socso, employers pay 1.75% of the employee's salary while the employee pays 0.75%.
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