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Exemption from EPF, IncomeTax and Socso Deduction

Reen
Member
Tue, 17 Oct 2017 08:19:16 AM  (Last updated: Fri, 20 Oct 2017 11:29:00 AM)

My company has not been doing well since last yr. The company has been delaying the salary (last payment is partially of July'2017 salary). The company also has not been submitting the employees EPF, Income tax and Socso since beginning of yr 2016, although those have been deducted from the monthly salary. We have made complains and seek for advice from the above mentioned bodies but no improvement on the situation. We have also made complains to labour department, however according to them those with salary >5K are not under their protection and we need to seek for legal assistance by ourselves. We feel so hopeless. Just last month, employees receive CP38 letter from LHDN, where the up-coming salary will be deducted for the tax for yr 2016. Which means, we are facing double cut for tax (first cut from the monthly salary, second cut from this CP38 instruction).

Where is Malaysia Law protecting the people? It is compulsory for the Employer to deduct the EPF, Income Tax, Socso, however, if the Employer didn't submit for the Employee, the Employee should bear the consequences? It's ridiculous!!!!!!!

My query is, whether we could request the Employer NOT to deduct ANYTHING from our salary? We would rather run the errands paying these than losing $ to this unethical company.

KL Siew
Administrator
Tue, 17 Oct 2017 09:22:25 AM

For EPF, SOCSO, Income Tax matters, you have to report to the respective departments and not the Labour Department.

Reen
Member
Tue, 17 Oct 2017 09:29:46 AM
Originally posted by KL Siew on Tue, 17 Oct 2017 09:22:25 AM

For EPF, SOCSO, Income Tax matters, you have to report to the respective departments and not the Labour Department.

Yes we already have reported to those departments but no avail. Their standard procedure is to assist lodging the complaints and MIA. Whenever we call to check for update, they always respond that they're looking into the matters.

Would like to seek for legal advise, whether we could request for exemption on the deduction? According to those officers, they did not mention about the exemption, but they responded that those are compulsory to be deducted.

KL Siew
Administrator
Tue, 17 Oct 2017 09:33:23 AM

Then you may have to consult a lawyer well versed in tax matters.

postfishcracker
Member
Fri, 20 Oct 2017 11:29:00 AM
Originally posted by Reen on Fri, 20 Oct 2017 11:29:00 AM

My company has not been doing well since last yr. The company has been delaying the salary (last payment is partially of July'2017 salary). The company also has not been submitting the employees EPF, Income tax and Socso since beginning of yr 2016, although those have been deducted from the monthly salary. We have made complains and seek for advice from the above mentioned bodies but no improvement on the situation. We have also made complains to labour department, however according to them those with salary >5K are not under their protection and we need to seek for legal assistance by ourselves. We feel so hopeless. Just last month, employees receive CP38 letter from LHDN, where the up-coming salary will be deducted for the tax for yr 2016. Which means, we are facing double cut for tax (first cut from the monthly salary, second cut from this CP38 instruction).

Where is Malaysia Law protecting the people? It is compulsory for the Employer to deduct the EPF, Income Tax, Socso, however, if the Employer didn't submit for the Employee, the Employee should bear the consequences? It's ridiculous!!!!!!!

My query is, whether we could request the Employer NOT to deduct ANYTHING from our salary? We would rather run the errands paying these than losing $ to this unethical company.

for cutting PCB and CP38 you must complaint to LHDN.

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