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Amendment Act

Employees' Social Security (Amendment) Act 2016

Feedback & supportAmends the Employees’ Social Security Act 1969

Official textFrom Laws of Malaysia Online, unchanged

(1)

This Act may be cited as the Employees’ Social Security

(Amendment) Act 2016.

(2)

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette.

s 2Amendment of section 5

The Employees’ Social Security Act 1969 [Act 4], which is referred to as the “principal Act” in this Act, is amended in section 5—

(a)

by renumbering the existing section as subsection (1);

(b)

in subsection (1) as renumbered, by inserting after the word “applies” the words “irrespective of the amount of wages”; and

EMPLOYEES’ SOCIAL SECURITY

(AMENDMENT) ACT 2016

4

(c)

by inserting after subsection (1) as renumbered the following subsection:

“(2)  Notwithstanding subsection (1), if the wages of an employee at any time exceed four thousand ringgit a month, his wages shall for the purposes of this Act be deemed to be four thousand ringgit a month.”.

s 3Amendment of section 58

Section 58 of the principal Act is amended by inserting after subsection (1) the following subsection:

“(1a)  The Organization may administer any other social security scheme if the administration of such scheme is conferred upon the Organization by any written law.”.

s 4Amendment of section 71

Section 71 of the principal Act is amended by inserting after subparagraph (ii) the following subparagraph:

“(iia) establishment or taking over of a company under section 74a and its maintenance;”.

s 5Amendment of section 72a

Section 72a of the principal Act is amended—

(a)

in the shoulder note, by inserting after the word “loans”

the words “or other financing facilities”; and

(b)

by inserting after the words “for granting loans” the words

“or other financing facilities”.

Employees’ Social Security (Amendment)

s 6New section 74a

The principal Act is amended by inserting after section 74

the following section:

“Power of the Organization to establish or take over companies 74a.  (1)  The Organization may, with the approval of the

Minister and the Minister of Finance, establish or take over any company under the Companies Act 1965 [Act 125] to carry out, administer, conduct and manage any project, joint venture, privatization programme, scheme, enterprise or any other matter which has been planned or undertaken by the Organization for the purposes of the Scheme of Social

Security under this Act.

(2)

The Organization may give instructions to the company referred to in subsection (1) on matters relating to the administration, finance and operation of the company which are consistent with the provisions of this Act, and such company shall give effect to the instructions.”.

Amendment of section 75a

(a)

in paragraph (d), by inserting the word “and” at the end of the paragraph;

(b)

by deleting paragraph (e); and

(c)

in paragraph (f), by substituting for the words “two other members” the words “three other members”.

s 8Amendment of section 95a

Subsection 95a(1) of the principal Act is amended by inserting after the words “any officer authorized in writing by the Director

General may” the words “, with the consent in writing of the

Public Prosecutor,”.

6

s 9Amendment of section 105

Subsection 105(2) of the principal Act is amended by substituting for paragraph (xxa) the following paragraph:

“(xxa) the offences under this Act or any subsidiary legislation made under this Act which may be compounded, and the criteria, method and procedure for compounding such compoundable offences;”.

s 10Amendment of First Schedule

The First Schedule to the principal Act is amended by deleting paragraph (1).

s 11Amendment of Third Schedule

The Third Schedule to the principal Act is amended—

(a)

in paragraph 2—

(i)

in item 34, in the column of “Monthly Wages”, by substituting for the words “When wages exceed

RM2,900” the words “When wages exceed RM2,900

but not RM3,000”; and

(ii)

by inserting after item 34 the following items:

Monthly Wages

Employer’s

Contribution

Employee’s

Contribution

Total

“35.

When wages exceed RM3,000

but not RM3,100

RM53.35

RM15.25

RM68.60 36.

When wages exceed RM3,100

but not RM3,200

RM55.15

RM15.75

RM70.90 37.

When wages exceed RM3,200

but not RM3,300

RM56.85

RM16.25

RM73.10 38.

When wages exceed RM3,300

but not RM3,400

RM58.65

RM16.75

RM75.40

Employees’ Social Security (Amendment)

7

Monthly Wages

Employer’s

Contribution

Employee’s

Contribution

Total 39.

When wages exceed RM3,400

but not RM3,500

RM60.35

RM17.25

RM77.60 40.

When wages exceed RM3,500

but not RM3,600

RM62.15

RM17.75

RM79.90 41.

When wages exceed RM3,600

but not RM3,700

RM63.85

RM18.25

RM82.10 42.

When wages exceed RM3,700

but not RM3,800

RM65.65

RM18.75

RM84.40 43.

When wages exceed RM3,800

but not RM3,900

RM67.35

RM19.25

RM86.60 44.

When wages exceed RM3,900

but not RM4,000

RM69.05

RM19.75

RM88.80 45.

When wages exceed RM4,000

RM69.05

RM19.75

RM88.80”;

(b)

in paragraph 4—

(i)

in item 34, in the column of “Monthly Wages”, by substituting for the words “When wages exceed

RM2,900” the words “When wages exceed RM2,900

but not RM3,000”; and

(ii)

by inserting after item 34 the following items:

Monthly Wages

Employer’s

Contribution

“35.

When wages exceed RM3,000 but not RM3,100

RM38.10 36.

When wages exceed RM3,100 but not RM3,200

RM39.40 37.

When wages exceed RM3,200 but not RM3,300

RM40.60 38.

When wages exceed RM3,300 but not RM3,400

RM41.90 39.

When wages exceed RM3,400 but not RM3,500

RM43.10 40.

When wages exceed RM3,500 but not RM3,600

RM44.40 41.

When wages exceed RM3,600 but not RM3,700

RM45.60 42.

When wages exceed RM3,700 but not RM3,800

RM46.90

and

8

Monthly Wages

Employer’s

Contribution 43.

When wages exceed RM3,800 but not RM3,900

RM48.10 44.

When wages exceed RM3,900 but not RM4,000

RM49.40 45.

When wages exceed RM4,000

RM49.40”.

s 12Amendment of Fourth Schedule

Paragraph 4 of the Fourth Schedule to the principal Act is amended—

(a)

in item 34, in the column of “Monthly Wages”, by substituting for the words “When wages exceed RM2,900” the words

“When wages exceed RM2,900 but not RM3,000”; and

(b)

by inserting after item 34 the following items:

Actual monthly wage of the month

First

Category

Second

Category

Corresponding assumed monthly wage for the month

“35.

When wages exceed RM3,000

but not RM3,100

RM68.40

RM38.10

RM3,050 36.

When wages exceed RM3,100

but not RM3,200

RM70.90

RM39.40

RM3,150 37.

When wages exceed RM3,200

but not RM3,300

RM73.10

RM40.60

RM3,250 38.

When wages exceed RM3,300

but not RM3,400

RM75.40

RM41.90

RM3,350 39.

When wages exceed RM3,400

but not RM3,500

RM77.60

RM43.10

RM3,450 40.

When wages exceed RM3,500

but not RM3,600

RM79.90

RM44.40

RM3,550 41.

When wages exceed RM3,600

but not RM3,700

RM82.10

RM45.60

RM3,650 42.

When wages exceed RM3,700

but not RM3,800

RM84.40

RM46.90

RM3,750 43.

When wages exceed RM3,800

but not RM3,900

RM86.60

RM48.10

RM3,850

Employees’ Social Security (Amendment)

9

Actual monthly wage of the month

First

Category

Second

Category

Corresponding assumed monthly wage for the month 44.

When wages exceed RM3,900

but not RM4,000

RM88.80

RM49.40

RM3,950 45.

When wages exceed RM4,000

RM88.80

RM49.40

RM3,950”.