RegisterLog In

Salary deduction for medical claim exceeding cap

Thu, 31 Jan 2019 10:58:55 AM  (Last updated: Thu, 31 Jan 2019 02:23:51 PM)

Dear Sir,

Our company provide medical benefit for all permanent staff. They can either visit the panel clinics or other clinics & submit medical claim after paid, up to the limited cap stated in the employee handbook.

Some employee had exceeding their cap but still going to our panel clinic, & the clinic will bill all to the company.

According to Sarawak Labour Ordinance, can we deduct the salary of the employee for medical claim exceeding their cap under Section 4 (c) - deductions in respect of payments to a third party on behalf of the employee?

If no, any other option?


KL Siew
Thu, 31 Jan 2019 02:23:51 PM

Under Section 24 of the Employment Act, deductions for payment to third party must have written request from the employees and also permission from the Director General of Labour. I am not sure about the provision is in the Sarawak Labour Ordinance. For this, it would be better for you to consult the Sarawak Labour Department.

Some penal clinics require the employees to pay the medcal bill up front and then the employees would recope the medical fee they are entilted to from the company.

  This topic is closed