Malaysia legislation
Section 25
Section 25
(2)
Subject to any written law, the collection of the repayment of the public sector home financing facility by the Board may be made by way of deduction of salary or pension by giving a notice in writing of such deduction to the employer of the approved eligible person.
(3)
It shall be the duty of the employer of the approved eligible person to whom the notice under subsection (2) is given to deduct such amount of moneys as notified by the Board, being the monthly amount of repayment of the public sector home financing facility—
(a)
from the salary of the approved eligible person; or
(b)
if the amount of the public sector home financing facility remains outstanding upon the retirement of the approved eligible person, from the pension of the approved eligible person, and to remit the amount so deducted to the Board on a monthly basis.
(4)
The sum of the public sector home financing facility which is not repaid or in arrears shall be treated as a civil debt owed by the approved eligible person to the Board and the Board may avail itself of such means under any applicable law for the recovery of such debt.
Act 767
(5)
Subject to any written law, the sum of the public sector home financing facility which is not repaid or in arrears may be recoverable by means of deductions from the salary, pension or other retirement benefits of the approved eligible person and is entitled to a right of priority to any other deductions but immediately after the deduction for—
(a)
any debt due and owing by the approved eligible person to the Federal Government and State Government;
(b)
the amount of taxes assessed under any written law;
and
(c)
all amounts due in respect of contributions payable under any written law relating to employees superannuation or provident funds or under any scheme of superannuation or retirement benefit which is an approved scheme under the federal law relating to income tax.
(6)
For the purpose of deduction from the salary, pension or other retirement benefits of the approved eligible person under subsection (5), the Board shall give a notice in writing of such deduction to the employer of the approved eligible person, and it shall be the duty of the employer to deduct such amount of moneys as notified by the Board, being the amount of the public sector home financing facility not repaid or in arrears—
(a)
from the salary of the approved eligible person; or
(b)
if the amount of public sector home financing facility remains outstanding upon the retirement of the approved eligible person, from the pension or other retirement benefits of the approved eligible person, and to remit the amount so deducted to the Board.
(7)
In the event the deduction of salary, pension or other retirement benefits of the approved eligible person under subsection (3) or (6), as the case may be, is insufficient, the approved eligible person shall pay the difference of the repayment of, or the amount not repaid or in arrears of, the public sector home financing facility.
Public Sector Home Financing Board 29
(8)
The Board shall not impose any additional interest or charges on the approved eligible person for any delay caused by the employer to make the deductions under subsections (3)
and (6).