I would like to enquire about my rights and benefits. I plan to enter a full-time employment contract with an overseas registered company. But i will be stationed to work in Malaysia and do not need to travel to the overseas country at all. My scope of work is web-based and hence, i am able to work remotely in Malaysia for my overseas employer. The target start date is 15 Dec 2016.
in this case: -
1. Will i need to pay EPF, PCB and Socso in Malaysia? They are not a Malaysia registered company, so will not have account with the relevant government agnecies. How do i deal with these.
2. Will i be covered under Workmen's Compensation insurance in Malaysia since i am working here or will i be covered under Workmen's Compensation insurance in the country where my employment contract is signed with.
3. Since i am starting in mid Dec, what is the expectation of my basic salary computation? Should i expect the basic computation to be calculated in accordance to Malaysia Labour Law because i am physically working in Malaysia, or do i expect the computation to be calculated in accordance to the country where by contract is signed with. If calculated in accordance to Malaysia Labour Law, what is the computation formula if my basic salary eg is MYR 5,000 and i work 5 day week and to start on 15 Dec 2016.
Please advise. Thank you.
This is my humble opinion:
1. Since that company is not registered in Malaysia, it may not be able to register with EPF and SOCSO as employer. So, contribution to EPF and SOCSO may not be possible. Give a call to EPF and SOCSO see what they say. As for income tax, I am not so sure whether you need to pay tax or not. I think you have to. Consult the LHDN for advice.
2. Workmen's Compensation insurance may be possible because you purchase it with private insurance company. Why not cover yourself with personal accident policy instead of WC insurance.
3. Whatever it is, have a proper agreement drawn up with all terms and conditions clearly stated therein. Get a lawyer to do it for you, if possible.
Thank you so much for the reply KL Siew.
For 2. Workmen's Compensation insurance. i want to know if Malaysia Labour Law covers me or not in my situation. Please advise.
For 3. Yes. There will be an employment agreement. I just want to know, if i my pay should be computed in accordance to Malaysia's computation or the overseas country's computation. They will definitely pay me because it is a reputable MNC. Please advise.
I would like to know on the view of Malaysia Labour Law.
Thanks in advance.
2. For more details about WC insurance, I think it would be better for you to contact the Labour Department. Such WC insurance usually covers lower pay workers like our foreign workers who are not eligible for SOCSO cocerage. Furthermore the amount of compensation payable is quite low. Anyway, go and get more info from the Labour Department.
3. Surely you will have to get clarification from your foreign employer whether you will be paid in Malaysian RM or their country's currency.
If you want to know about Malaysian Labour Law, contact the Labour Department. Do bear in mind the Employment Act only covers employees with salary not more than RM2k. If your salary is more than that, the agreement you sign with the company is the "law". So, proper agreement should be drawn up.