(BridgeKnowle) Year End Checklist for HR - Companion WorkBook

of 100
http://totallyunrelatedrandomanddebatable
.blogspot.com/
YEAR-END CHECKLIST
FOR HR DEPARTMENTS
[Complete Guide to Managing Year
End HR Matters]
Kenny Ong
WORKBOOK

of 100
Our Vision is to become and be recognised as a leading distributor in the industry. This vision can only be realised by building on quality products, quality service and management / technical know-how and creativity. To do so, we need to build an organisation that is manned by people who are highly committed, motivate, competent, responsible, customer oriented and results oriented.
Our Human Resource Management Strategy shall be guided by three key elements: -
 Human Resource is managed in such a way that is adds high value to the organisation
- employee performance is productive
- the organisation is lean, adaptable and forward looking
 Employees have a strong sense of purpose. They feel that they are an integral part of the ABC Company Sdn Bhd team. They have interesting and professionally challenging jobs and they want to improve individual skills and capabilities to match career opportunities.
 All employees are accountable for results
We believe that in order to realise our Human Resource Management Strategy
 Human Resource Management must be the responsibility of line managers
 Capability growth of our employees must be integrated with business management
 Performance development, performance recognition and reward management would be the core processes of ABC's human resource management
We believe that people work better if
 They work to accomplish a purpose
 They have the competencies to fulfil the job roles
 They have the right tools, system and techniques
 They have the resources available
 They have the knowledge of their progress and results
 They have guidance, coaching and counseling
We wish you a successful career with ABC Company Sdn Bhd
Human Resource Manager

of 100
Item Section
 Foreword 1
 Introduction 2
 Vision/Mission 3
 Corporate Values 4
 Core Competencies 5
 Organisation Charts 6
 Your Career in ABC Company Sdn Bhd 7
 Your Role and Accountability 8
 Rest & Recreation 9
 Leave 10
 Overtime 11
 Reward and Compensation Principles 12
 Benefits & Allowances 13
 Retirement / EPF 14
 Medical and Health Care 15
 Staff Insurance 16
 Perquisites 17
 Quality of Work Life 18
 Principles of Performance Appraisal 19
 Your Training & Development 20
 Succession Planning & Career Development 21
 Code of Ethics Professional Accountability 22
 The Employment Contract 23
 Employment Discipline 24
 Employment Grievance 25

of 100
SECTION 1
Page 1 of
1
Revision No:
0
Issued by:
Human Resource Department
Issue Date:
April 2000
Foreword by the Managing Director
Welcome to ABC Company Sdn Bhd !
You are important to us, therefore this Career Guide is designed to provide you with relevant information and guidelines in line with the people management philosophy of the company.
This Career Guide should enable you to feel comfortable with the company's operating principles and enable you to take accountability for your personal growth and advancement.
It is our desire to provide you with a motivating working environment so that you are successful in your career aspirations
We look forward to your contribution as a team member of ABC Company Sdn Bhd.
Together ABC Company Sdn Bhd BOLEH!!
With best regards
____________________
Managing Director

of 100
SECTION 2
Page 1 of 1
Revision No: 0
Issued by: Human Resource
Department
Issue Date: April 2000
The objective of this Handbook is to state the terms and
conditions of employment of the ABC Company Sdn Bhd. For the
purpose of this Handbook, the above companies are here-in-after
refer to as "The Company". The Company shall extend the terms
of this Handbook to only confirmed employees. The company shall introduce, modify, amend or annul
any terms and conditions of employment at any time during its operations provided that such changes
(shall not be in direct) conflict with the provisions of the Malaysian Labour Legislation. Employees affected
by such changes shall be duly informed at least two (2) weeks before any implementation. Any person so
affected by the terms and conditions of employment stated in this Handbook may seek clarifications or
explanations from the respective Head of Dept or the Human Resource Dept.
This handbook shall supersede all other terms and conditions of employment currently practised in the
Company.

of 100
SECTION 3
Page 1 of
1
Revision No:
0
Issued by:
Issue Date:
April 2000
Please State your Vision here.
VISION
Please State your Mission here.
MISSION

of 100
SECTION 4
Page 1 of
1
Revision No:
0
Issued by:
Issue Date:
April 2000
We value our people
Our success depends on each of us. We WORK TOGETHER in a way that recognises and takes advantage of this.
Our commitment to understanding and MEETING THE NEEDS OF OUR CUSTOMERS is key competitive advantage. By doing so, we build enduring relationship
We value our customers
We are part t of our community where we operate and we are a citizen of these communities. Therefore, we conduct our business in an ETHICAL MANNER.
We value our place in the community where we operate
We value our business partner
WE RELY ON MANY PARTNERS. In our business, suppliers, service providers and joint venture partners.
We value our shareholders
We are focussed to provide SUPERIOR AND SUSTAINABLE WEALTH FOR OUR SHAREHOLDERS. We treat all of them with fairness and equity

of 100
SECTION 5
Page 1 of
2
Revision No:
0
Issued by:
Issue Date:
April 2000
 Actively seeks to improve others' skills and talents by providing constructive feedback, coaching, training opportunities, and assignments, which challenge their abilities.
 Believes in own ability to accomplish a task and select an effective approach to solving the problem. Copes in increasingly challenging circumstances and demonstrates confidence in own initiatives. Impresses, influences and convince others in a way that results in acceptance and agreement
 Desires to help the customer. Concerned to provide a prompt, efficient and personalised service to clients; focuses effort on discovering and meeting the internal and external customer's needs.
 Successfully adapts to changing demands, conditions and people. Understands and appreciates difference and opposing perspectives, is receptive to change and adapts own approach
 Demonstrates a broad-based view of issues, events and activities and a perception of their longer-term impact or wider implications. Recognises that implications are wider than his or her own geography, business unit or function.
Building Potentials and Talents
Confidence
Customer Commitment
Flexibility
Global View

of 100
SECTION 5
Page 2 of
2
Revision No:
0
Issued by:
Issue Date:
April 2000
 Meets or exceeds standards of excellence, which may be own past performance, an objective measure, others performance, challenging goals, or innovation. Commits self to work hard towards goals and exceed targets. Shows enthusiasm, drive and career commitment.
 Implements plans to achieve results and monitors progress. Shows a clear sense of direction, meets deadlines and avoid crises. Confronts issues, influences and enlists the support of key players.
 Analyses issues and breaks them down into their component parts. Make comparisons of different aspects and identifies trends and patterns within the problem. Makes systematic and rational judgements based on relevant information.
 Works to build and maintain useful relationships and networks of contacts both inside and outside the Board. Attuned to internal politics and alert to changing dynamics within the organisation.
 Creates a positive environment, which encourages co-operation. Inspires enthusiasm, co- operation and commitment to achieve the goals of the team/organisation. Creates an environment where the experiences and views of all team members are valued and encouraged.
 Works co-operatively with others, to be part of a team. Actively supports team decisions and carries out commitments. Interacts in a sensitive, supportive and effective manner. Shares information, co-operates, respects and works well with others.
Goals and Achievements
Planning and Implementation
Problem Solving & Analysis
Relationship Building
Team Leadership
Teamwork & Co-operation

of 100
SECTION 6
Page 1 of
1
Revision No:
0
Issued by:
Issue Date:
April 2000
Managing
Director
Marketing
Manager
Senior
Sales Mgr
Operations Manager
Business
Manager
Finance Manager
Personnel & Admin Mgr
Marketing
Team
Sales
Team
Operations Team
Food Svc
Team
Finance
Team
Personnel
Team

of 100
SECTION 7
Page 1 of
3
Revision No:
0
Issued by:
Issue Date:
April 2000
A career is a sequence of work-related experiences, which enable a person to apply his or her competency in producing some desired results.
The several career stages in our life may include: -
1
2
3
 Images from TV, movies and family
 Introduction to 1st job
 Reality shock
 New opportunities
 Sorting out work life
 Finding a comfortable balance between work and home; friends and professionals
4
5
6
 New senses of growth
 New opportunity to be better
 A solid citizen
 A seasoned professional or conceptual leader
 Learning to accept a reduced role
 Readjusting the balance between family, friends and work
The Company’s Career Development Objectives are: -
1. To improve The Company’s performance by enhancing employee competency at every career stage.
2. To “grow” and enhance employee competencies to match The Company’s current and “future needs”.
3. To reduce “obsolescence” in traditional jobs by creating new employment opportunities using new skills.
4. To encourage retention of professionals by providing professional development opportunities.
Exploratory
Stage
Early
Experiences
Re-establishing
Mid Career
Late Career
Decline

of 100
SECTION 7
Page 2 of
3
Revision No:
0
Issued by:
Issue Date:
April 2000
Your Role in Career Advancement
(How you can advance your career in The Company)
In order to take advantage of the career prospects in The Company, you must be active in taking the following steps: -
1. Conduct a self-appraisal - what are your current capabilities, strengths and areas for improvement?
2. What is your goal direction? (tentative though it may be )
- do you want to be a seasoned and recognised specialist in any field ? OR
- do you want to manage your own business (ultimately)
3. Establish a time frame, consult your supervisor and others who may establish a reasonable time segment for you.
An example of a competency growth plan: -
Executive
3 years
Professional (Asst. Mgr.)
3 years
Senior Professional
5 years
Seasoned
Professional
Age
24
27
30
35
Competencies
to be acquired
 Technical skills
 Initiative
 Team Leadership Skills
 Conceptual Thinking Capability
 Planning and organising work
 Analytical Thinking
 Interpersonal Influence Skills
 Mentoring Skills
 Interpersonal Influence Skills
 Tenacity
 Developing Others
 Results Orientation
Self-managed career progression can be achieved by you taking an active role in seeking and acquiring these critical competencies.
You may consult and seek assistance from your supervisor, other senior professionals, the human resource manager or you may even consult external recognised experts for guidance.
The career progression may not proceed as you have planned with respect to time. You may move ‘faster’ or ‘slower’, but it is critical that you ‘grow’ in the manner planned.

of 100
SECTION 7
Page 3 of
3
Revision No:
0
Issued by:
Issue Date:
April 2000
The Company’s Competency Based Career Levels
Show below is a model of the general and specific competencies of the career levels of executives and professionals.
Typical
Competencies
Critical
Career Title
General
Specific
Output
Seasoned Professional
o Assignments are subject to broad goals and broad policies only
o Member of Management Team involved in determining key results to be achieved by the organisation both short term and strategic results
Multi business strategic management capability comprehensive integration of large but relatively homogenous business units
Management of conceptual direction and achievement of goals and business objectives within very broad guidelines
o Accountable for policy development and implementation at operating level
o Achievement of specific goals and objectives are critical
o Implements policies to achieve corporate planned results
Conceptual leader. Able to develops business alternatives
Ability to develop and appraise conceptual alternatives
Management of long term business results and strategic position of the business unit within general guidelines
Senior
Professional
o Implements specific policies based on principles set by business unit head.
o Guided by general practice of the field and study on principles
o Review and recommend policy changes
Able to develop conceptual alternatives to deliver project results
Achievement of business objectives and goals within corporate guidelines
o Achievement of results is more important than compliance with internal procedures
Able to determine process and systems alternatives to deliver project sub-objectives
Able to conduct process and systems variation with occasional guidance
Delivery of sub-objectives and results - only occasional conceptual guidance
Delivery of results and achievements of sub- objectives - under policies guidance
Professional
o Implement systems and processes based on set principles and objectives to produce designed results.
o Discretion on basic principles and process is allowed in order to achieve results
Ability to determine process and systems alternatives to deliver sub-objectives within defined policy
Achievement of sub-objective and delivery of results within policies set
Delivery of sub-objectives and results within specific policies on freedom to act
Delivery of sub-objectives and results - subject to supervisory review
Executive
o Implement systems and processes based on set standards specifications and objectives.
o Discretion to deviate is narrow and subject to review of progress and results.
Conduct work based on tasks assigned and keep to prescribed standards and work routine.
Take action for results within well defined processes and procedures on freedom to act. Results are reviewed by superior
o Usually a large part of the job involves scheduling and managing activities to achieve standard output on time.
Learning and understanding basic work process and procedures
deliver results within specific processes and procedures on freedom to act. Results are closely reviewed by superior
o Conduct work based on assigned tasks within prescribed standards
o Progress and results subject to close review.
Assist others in work assignments under close supervision
Work within well defined processes and procedures on freedom to act. Closely supervised by superior

of 100
Your Role and Accountability
SECTION 8
Page 1 of 1
Revision No: 0
Issued by: Human Resource Department
1. Your Role and Accountability
As a member of the company, you need to understand your role and the results expected
of you.
 All staff must have a copy of the Key Results expected of their position. Make sure
you have a copy of the Key Results for your position
 The company’s human resource process and systems will be explained in an
induction program organised for you.
 It will help you build relationships, understand norms, establish and develop a
network of contacts relevant to your role. You will begin to build a relationship with
the company.
 Always contact your team leader or the Human Resource Manager for further
clarification. You may also contact your friends in your team or section for assistance
- but remember they can interpret matters in a different manner depending on their
own experience.
The following is a format of a results description:
Key Results Major Supporting Actions Performance
Indicators
1. Achieve targeted
production
volume
 By monitoring production performance and taking corrective
actions
 By analysing production downtime and introducing
improvements
 By thorough preparation for introduction and
implementation of new models and variants
1. Timely production
targets
2. Productivity ratios
3. Downtime
4. Implementation
schedule
2. Achieve product
quality targets
 By reviewing quality performance results and identifying non
conformance and undertaking corrective actions
 By analysing customer feedback and taking corrective actions
 By undertaking on-line and off-line continuous quality
improvement programs and activities
 By undertaking education and re-education programs
1. Quality index
2. Defect occurrence
3. Non-conformance to
established standards
4. Demerit points

of 100
Rest & Recreation (Work and Holiday)
SECTION 9
Page 1 of
1
Revision No:
0
Issued by:
Issue Date:
April 2000
1.0 Working Days and Hours
Introduction
This section covers the official working hours of the employee.
1.1 All employees except those from the Production and QC Dept shall work 5 days a week of thirty-seven and half (37½) hours (excluding meal breaks) per week
Monday - Friday 8.30 am to 5.00 pm
Lunch 1.00 pm to 2.00 pm
The Production, Maintenance and QC staff are required to work on shift.
1.2 The Company may vary this arrangement depending on operational needs of particular unit and section in order to provide better service to our customers.
1.3 The Company may require you to work on shifts where and when it is necessary in order to be more effective.
1.4 The Sales and Marketing personnel may be required to work at different times when there are company's promotional activities taking place.
1.5 You shall also work on a public holiday or a rest day, or work overtime and attend to emergency work in excess of the normal work hours on any given day when requested by your superior. This is the nature of being dedicated and committed to the mission of The Company.
2.0 Public Holidays
The company shall grant all its employees paid holidays on all public holidays gazetted by the Malaysia Government. Where a state in Malaysia gazettes certain specified days as state holidays, the employees based in that State are eligible for such gazetted holidays.

of 100
Leave
SECTION 10
Page 1 of
1
Revision No:
0
Issued by:
Issue Date:
April 2000
Introduction
This section covers the entitlement, application and scheduling of the following types of leave: -
a) Annual Leave
b) Medical Leave
c) Marriage Leave
d) Maternity Leave
e) Paternity Leave
f) Examination Leave
g) Compassionate Leave
3.0 Annual Leave
3.1 All employees shall be eligible for annual leave after completion of one (1) year of continuous service.
3.2 The Company may at its discretion grant proportionate annual leave to confirmed staff in cases where their service with The Company is less than one (1) year.
3.3 Eligibility for annual leave shall be as follows:-
Years of
Service
Days
Executive
Non-Executive
1st to 5th year
6th to 10th year
11th year & above
16
18
21
14
16
18
3.4 Rest days and gazetted public holidays shall not be included when computing the leave entitlement.
3.5 The Company may call you back to work and cancel the leave if the nature of the situation requires you to be back on duty.
3.6 When due to exigencies of the service, leave application is not granted or leave when granted is cancelled, then the leave which cannot be taken or cancelled shall be carried forward and taken when one can be spared during the following year.

of 100
SECTION 10
Page 2 of
5
Revision No:
0
Issued by:
Issue Date:
April 2000
3.7 Employees are encouraged to take their leave for the respective year. Leave should only be carried forward when absolutely necessary and only upon written approval of the manager / supervisor.
3.8 During the first and last years of service, and if you work less than a complete calendar year, your leave entitlement will be calculated on a pro rate basis.
3.9 An employee requesting for annual leave has to submit the Leave Application Card to his Head of Department at least seven (7) working days prior to the date of the planned leave.
3.10 On approval, the employee will return the card to the Human Resource Dept for safe-keeping and updating of records. If the leave is not approved, the card will be returned to the Human Resource Dept with reason(s) provided.
3.11 In the case of work exigencies, an employee who is on leave may be called back to his place of work. As soon as the employee is back for duty, his Head of Dept will notify the Human Resource Dept of the leave cancellation in writing. Human Resource Dept will amend the employee's leave record accordingly.
4.0 Medical Leave
4.1 An employee is eligible to paid medical leave up to fourteen (14) days in each calendar year if the said employee is not suffering from a prolonged serious illness and is not required to be hospitalised or confined to bed, medical leave eligibility is as follows:-
Years of service
No of days
Less than 2 years
2 years but less than 5 years
5 years and above
14
18
22
4.2 An employee who is advised to go on medical leave by a doctor from the Company's Panel of Clinics (Exhibit 3A) has to inform Company within 24 hours. When the employee returns from medical leave, he is required to submit his Medical Leave Certificate to his Head of Dept for verification before submission to Human Resource Dept.
4.3 For non-emergency cases, Medical Leave Certificate obtained from a Non-Panel Clinic may be considered as no pay leave.

of 100
SECTION 10
Page 3 of
5
Revision No:
0
Issued by:
Issue Date:
April 2000
4.4 Human Resource Dept will inform employees who have fully utilised their medical leave entitlement for the year. Human Resource Dept may then proceed to do the following:-
a) Deduct the excess leave from their annual leave entitlement, or
b) Consider the access days taken as no pay leave, if the annual leave has been exhausted.
4.5 The employee is required to complete the Leave Application Card for cases in 4.4.a).
4.6 Application for hospitalisation leave shall be made in writing to the Human Resource Dept through the Head of Dept. All applications must be accompanied by a recommendation letter from the attending doctor/specialist.
4.7 If the employee is still not fit for work at the end of the hospitalisation leave, Human Resource Dept may consider a medical boarding out.
5.0 Hospitalisation Leave
5.1 An employee who has been with the Company for 10 years or more and suffering from serious illness, or any other disease that requires prolonged absence from work, as certified by the approved doctor shall be granted sick leave with full pay up to a maximum three (3) consecutive months provided he is hospitalised. Those with less than 10 years' service will only be entitled to a maximum of two (2) consecutive months of sick leave.
5.2 At the expiry of the sick leave mentioned in Clause 3.3.1 above, an employee may be medically boarded out, provided always that The Company seeks the advice of an approved doctor.
6.0 Maternity Leave
6.1 All female staff shall be entitled to fully-paid maternity leave of sixty (60) consecutive days in respect of the first five (5) confinements while under the employment of The Company. Non-pay leave will be granted by subsequent confinements.
6.2 Leave of absence due to any illness or miscarriage during the first 28 days will be considered as normal sick leave.
6.3 A female employee applying for maternity leave shall submit the Leave Application Card together with the doctor's certification of the expected delivery date to Human Resource Dept through her Head of Dept by the 7th month of her pregnancy.

of 100
SECTION 10
Page 4 of
5
Revision No:
0
Issued by:
Issue Date:
April 2000
6.4 The employee shall update Human Resource Dept and the Head of Dept on any changes in the above.
7.0 Marriage Leave
7.1 Three (3) working days in continuous sequence to the day of marriage for a confirmed employee on the occasion of his/her own and first marriage.
7.2 An employee shall complete and submit Leave Application Card together with Marriage Certificate and Invitation Card (if any) to Human Resource Dept through their Head of Dept at least seven (7) working days prior to the date of the planned leave.
7.3 The employee will be notified if the leaves are approved and the Card shall be returned to the Human Resource Dept for updating of records.
8.0 Paternity Leave
8.1 One working day in the event of the birth of his legal child.
8.2 Application shall be made by completing the Leave Application Card.
8.3 If circumstances do not allow the employee enough time to apply for leave under normal procedures, the employee shall inform his immediate supervisor at the earliest opportunity.
8.4 Upon his return from such leave, the employee shall complete the Leave Application Card and submit it together with relevant supporting documents to his Head of Dept for approval. The card is to be submitted to Human Resource Dept for updating purposes.
9.0 Compassionate Leave
9.1 Three (3) working days in the event of the death of immediate family members such as spouse, son, daughter, mother, father, mother-in-law or father-in-law.
9.2 One working day in the event of the death of close relatives such as grandfather, grandmother, brother or sister.
9.3 Application shall be made by completing the Leave Application Card.

of 100
SECTION 10
Page 5 of
5
Revision No:
0
Issued by:
Issue Date:
April 2000
9.4 If circumstances do not allow the employee enough time to apply for leave under normal procedures, the employee shall inform his immediate supervisor at the earliest opportunity.
9.5 Upon his return from such leave, the employee shall complete the Leave Application Card and submit it together with relevant supporting documents to his Head of Dept for approval. The card is to be submitted to Human Resource Dept for updating purposes.
10. Examination Leave
10.1 A confirmed employee who is nominated by The Company to attend courses may be granted examination leave maximum three (3) working days in a calendar year.
10.2 Application shall be made by completing the Leave Application Card with supporting document to Human Resource Dept through Head of Dept at least seven (7) working days prior to the date of the planned leave.
10.3 This applies only to the days on which the exam is held and only when the time of the exam falls within the normal working hours.
10.4 The employee will be notified if the leaves are approved and the Card shall be returned to the Human Resource Dept for updating of records.

of 100
Overtime
SECTION 11
Page 1 of
1
Revision No:
0
Issued by:
Issue Date:
April 2000
1.0 Overtime
1.1 Overtime is defined as time worked in excess of normal working hours during normal workdays, or time worked on Saturdays. Non-supervisory employees may be required by management to work overtime. They are then entitled to overtime pay provided prior directive has been given by the appropriate Head of Dept for such work to be done on paid overtime.
1.2 Overtime rates are as follows:-
a) Normal Workday / Saturday
b) Rest Day (Sunday) & Gazetted Public Holiday
1.5 x Normal Hourly Rate
- Not in excess of Normal Hours of work
- In excess of normal hours of work
Normal Hourly Rate =
Basic Pay x 13
weeks x 37½ hours
2.0 Computation of Overtime
2.1 All fraction of an overtime hour shall be rounded off to the nearest 1/4 of an hour.
2.2 Meal breaks taken during overtime are not included in the period of overtime.
2.3 Maximum overtime allowed per employee per month is 104 hours.
3.0 Application
An eligible employee who has worked overtime shall be required to complete the Overtime Claim Form (Exhibit 4A). The employee shall fill in his Name, Employee Number, Department, the date(s) and hours of overtime worked in the Form. All overtime work done shall be checked by the respective immediate superior and approved by the respective Head of Dept.
4.0 Processing
Completed Overtime Claim Forms shall be submitted to the Human Resources Dept by the 10th of each month. Late submission of overtime forms will be processed in the following month.

of 100
Reward and Compensation Principles
SECTION 12
Page 1 of 4
Revision No: 0
Issued by: Human Resource Department
1.0 Reward and Compensation
1.1 The Company management is committed to offering pay and benefits that are fair
and competitive in order to recruit, retain and motivate highly productive talents
who will continue to grow
1.2 The guiding principles are :-
1.2.1 Individual performance is rewarded according to achievement of results
expected
1.2.2 Career levels are designed to reflect competencies necessary to perform at
different levels. The salary range set for each career level is determined to a
large extent by market practice
1.2.3 Outstanding achievement is further rewarded to encourage superior
performance
1.3 The Company’s compensation policy is to pay salaries which reward each employee
in proportion to the value of the career level compared to established job levels
which are competitive.
1.4 The Company’s pay philosophy is a combination of pay for performance and pay
for competencies.
1.5 The individual can directly influence his or her total earnings through performance
(results) and by self directed learning all the time
2.0 In addition to being externally competitive, The Company salary system is designed to be
internally consistent.
These practices are designed to attract and retain
competent employees, and to motivate employees so
that they achieve high personal growth.

of 100
SECTION 12
Page 2 of
4
Revision No:
0
Issued by:
Issue Date:
April 2000
3.0 Job Evaluation
3.1 Career levels increase with respect to responsibilities and accountabilities.
3.2 The term Job Evaluation refers to the process of measuring the value of each career position with respect to their relative value to The Company.
3.3 The process of Job Evaluation begins with the Position Description which describes the basic purpose and job responsibilities of the position (not the individual) and covers the following :
3.3.1 Results Creation
3.3.1.1 Scope, accountability, level and degree of responsibility, reporting relationships and overall impact of the position on end results
3.3.2 Problem Solving
3.3.2.1 Level and complexity of problem solving required to perform standard results
3.3.3 Competencies
3.3.3.1 Special qualifications, experience, skills and competencies, technical and professional proficiencies
3.4 Managers and supervisors usually assume responsibility and accountability for departments where career levels are already analysed, written and evaluated. However, many career levels change over time and new career levels may be created. When such changes occur, the Manager or supervisor should ensure that the Position Description is written or rewritten to capture the changes and, have them evaluated or re-evaluated.
3.5 Care must be taken to determine the requirements of the career level, not the qualification of the individual.
3.6 Pay for Performance drives results orientation whilst pay for competencies encourages development.

of 100
SECTION 12
Page 3 of
4
Revision No:
0
Issued by:
Issue Date:
April 2000
3.7 Pay for Performance is the recognition and reward for results.
3.7.1 The pay for Performance principles encourages initiative, creativity, continuous improvement and long term performance
3.7.2 Performance is measured by comparing an employee’s behaviour and results against performance plans.
3.7.3 This process creates a results culture and motivates competent employees to contribute to their highest level of potential.
4.0 Performance plans include :
4.1 Selected competencies and behaviours that describe the manner in which results are achieved
4.2 Measures and standards that define the level of performance expected
4.3 Objectives that set measurable goals for the employee to achieve
4.4 Performance is recognised in the following salary actions :
4.4.1 Merit Increase which recognises and rewards productivity and results
4.4.2 Promotional Increase which rewards an employee’s assumption of greater responsibilities and accountabilities.
4.4.3 Bonus which is discretionary may be paid according to both individual and company performance
5.0 Summary
5.1 The success of The Company’s Compensation System depends on how well it is understood and administered.
5.2 Good communication between the employee and his / her Manager / Supervisor is essential. That is why we have published this guide which we hope will give you a better understanding of the system.
5.3 Each Manager / Supervisor must be able to explain the process involved and the philosophy of The Company’s Compensation System.

of 100
SECTION 12
Page 4 of
4
Revision No:
0
Issued by:
Issue Date:
April 2000
6.0 Salary Ranges
6.1 The salary ranges of career levels are confidential and should be treated accordingly
7.0 Bonus
7.1 Payment of bonus shall be paid at the sole discretion of the Company.
7.2 Payment of bonus if declared by The Company shall be based on The Company’s performance and individual performance.
7.3 Bonus shall be payable to confirmed employees who are in the services of The Company at the time of payment.
7.4 All confirmed staff shall be eligible for a 13th month's pay and shall be payable during the month of December. However, for the first year of service, an eligible employee who has completed less than 12 months continuous service with the Company will be eligible for one-twelfth (1/12) of the 13th month's pay for each completed month of service.
8.0 Uniforms
8.1 The Company will provide uniforms to the following categories of staff. The design and type of uniform shall be determined by the Company.
Office Cleaners - 3 sets to be provided yearly.
Drivers/Attendants - Maximum RM60 per pair of pants
T/Shirt
Maximum RM100 per pair of shoes yearly
8.2 All uniforms staff provided with such uniforms shall wear such uniforms at all times during working hours. Failure to wear such uniforms shall be construed an at of misconduct and the staff shall be liable to disciplinary action by the Company.
8.3 All staff required to wear uniforms shall be given 3 sets of uniforms on confirmation in employment. Thereafter, uniforms will be replaced as and when necessary up to a maximum of 3 sets per calendar year starting 1st January of the year following the year in which the staff was confirmed.

of 100
Benefits & Allowances
SECTION 13
Page 1 of
3
Revision No:
0
Issued by:
Issue Date:
April 2000
1.0 Staff Loan
1.1 Introduction
This section covers the eligibility, processing and administration of loans listed below: -
1.1.1 Car Loan
1.1.2 Computer Loan
Human Resource Dept will ensure that the total monthly salary deduction inclusive of the loan applied for shall not exceed 1/3 of the employee's nett salary.
1.1.1 Car Loan
1.1.1.1 Eligibility
All confirmed staff (Executives/Managers) from the Sales and Marketing Departments are eligible to apply for this loan.The maximum loan amount is 80% of the value of the car or RM50,000.00 whichever is lower.The repayment period is 5 years with an interest of 2% per annum. Employees who are provided with Company cars are not eligible to apply. Application from the confirmed Executives/Managers from the other departments will be considered on case by case basis.
1.1.1.2 Application Procedure
a) An eligible employee shall complete and submit to Human Resource Dept an Application for Car Loan form (Exhibit 6A). The employee should include a copy of the quotation (for new car) or a valuation letter (for used car).Human Resource Dept will check and certify the application before seeking approval from the Managing Director
b) Upon approval by the Managing Director, the Human Resource Dept shall inform the employee and the Finance Dept to release the cheque made payable to the vendor through the employee.
c) A schedule of repayment will be signed by the employee for repayment of loan to be made through salary deductions.

of 100
SECTION 13
Page 2 of
3
Revision No:
0
Issued by:
Issue Date:
April 2000
d) Human Resource Dept shall keep a copy of the following documents once the car has been registered:-
i) Registration Card to be registered under the employee's name
ii) Insurance Cover Note
e) The employee shall clear the balance of the loan within seven (7) days upon the employee's resignation/termination from the company.
f) If the application is not approved, Human Resource Dept shall inform the employee concerned in writing.
1.1.1.3 Withdrawal of Benefit
The loan will be withdrawn when:-
i) The Employee resigns or whose services are terminated by the Company.
ii) The loan has been repaid in full.
iii) The employee sells the car.
1.1.2 Computer Loan
All confirmed staff (Supervisors/Executives/Managers) whose nature of work require the use of computer are eligible to apply. The maximum loan amount is 70% of the value of the computer or RM5,000.00 for laptop or RM3,000.00 for desk top, whichever is lower. The repayment period is for 2 years interest free.
1.1.2.1 Application Procedure
a) An employee applying for the Computer Loan must complete the Application for Computer Loan Form (Exhibit 6B) together with the quotation from a recognised vendor. These shall then be submitted to Human Resource Dept through their respective Head of Dept.
b) Human Resource Dept shall check and certify the application before seeking the approval from the Managing Director.
c) Upon approval by the appropriate authority, Human Resource Dept shall inform the employee and the Finance Dept to release the cheque made payable to the vendor through the employee.
d) The Human Resource Dept shall obtain the original receipt from the employee and forward it to the Finance Dept.

of 100
SECTION 13
Page 3 of
3
Revision No:
0
Issued by:
Issue Date:
April 2000
e) A schedule of repayment will be signed by the employee for repayment of loan to be made through salary deductions.
f) The computer purchased shall be under the employee's name.
g) Salary deductions will commence one (1) month after the loan is released.
h) The employee shall clear the balance of the loan within seven (7) days upon the employee's resignation/termination from the Company.
1.1.2.2 Withdrawal of Benefit
The loan shall be withdrawn upon the employee's resignation/termination from the Company.
2.0 Transport Allowance
Transport Allowance will be paid as follows:-
Head of Department - RM400/month
Other Managers/Executives/Supervisors - RM300/month
The transport allowance will only be paid when a company car is not provided.
For those who are not entitled to transport allowance, car mileage at RM0.35/km can be claimed for travel on company business.
3.0 Shift Allowance
Non-Supervisory employees who are required to work shift shall be paid a shift allowance at the following rates:-
a) Full rotating shift system:
First shift - Nil
(7.00am - 3.00pm)
b) Second Shift - RM2.00 p/day
(3.00pm - 11.00pm)
c) Third Shift - RM5.00 p/day
(11.00pm - 7.00am)
Alternating shift system:
a) First Shift - Nil
(7.00am - 7.00pm)
c) Second Shift - RM5.00 p/day
(7.00pm - 7.00am)
The actual time schedule for each shift shall be determined by the company from time to time and this will be posted on the Notice Board.

of 100
Retirement / EPF
SECTION 14
Page 1 of
1
Revision No:
0
Issued by:
Issue Date:
April 2000
1.0 Retirement Age
The Company's policy is to recruit employees who are 16 years of age and above and the retirement age for all staff shall be:-
1.1 Male 55 years
1.2 Female 55 years
Reemployment of an employee after his retirement shall be at the discretion of The Company provided the employee is certified medically fit.
2.0 EPF Contribution
2.1 The company and the employee will be jointly liable to contribute to this fund as per statutory rates set by EPF.
2.2 With effect from 1 June 1999, the company will contribute 15% and the employee 11% to this fund.

of 100
Medical and Health Care
SECTION 15
Page 1 of
3
Revision No:
0
Issued by:
Issue Date:
April 2000
1.0 Introduction
This section covers medical coverage entitlement for Group Hospitalisation and Surgical Policy, the list of the Company's Panel of Clinics/Hospitals, medical examination, medical treatment by Company's and non-Company's Panel of Clinics, specialist treatment and hospitalisation, reimbursement of medical bills and the maintenance of medical records.
2.0 Staff Entitlement
2.1 Schedule of Benefits
(Maximum Per Any One Disability)
Type of Benefit
Plan 5
Plan 6
Plan 7
Plan 8
1. Daily Room & Board
(Max. 60 days for Private Hospitals)
(Max. 75 days for Govnt. Hospitals)
400
250
200
150
2. Maximum Limit Without Surgery
10,000
7000
5,500
4,200
3. Maximum Limit With Surgery
25,000
13800
10,000
7,000
Note
Plan 5 - Senior Managers
Plan 6 - Managers
Plan 7 - Executives/Supervisors
Plan 8 - Others
3.0 List of Company's Panel of Clinics/Hospitals
3.1 Human Resource Dept shall update the List of Panel of Clinics/Hospitals when necessary including all particulars of the clinic/hospital such as the clinic/hospital names, address, telephone number and operating hours.
3.2 Human Resource Dept shall inform all employees of any new Panel of Clinics/Hospitals through memo on the notice board.
4.0 Medical Examination
4.1 All successful candidates are required to undergo a pre-employment medical examination before the issuance of his Letter of Appointment. Human Resource Dept shall issue a letter to authorise the medical examination (Exhibit 8A).
4.2 The doctor performing the medical examination shall submit the medical report to Human Resource Dept.

of 100
SECTION 15
Page 2 of
3
Revision No:
0
Issued by:
Issue Date:
April 2000
4.3 Human Resource Dept shall review the medical report to determine whether the employee is medically fit for employment.
4.4 The medical examination report received shall be recorded by Human Resource Dept and the report filed in the respective employee's Personal File.
4.5 All Managers are entitled for a full medical check-up every 3 years.
5.0 Medical Treatment by Panel of Doctors
5.1 An employee seeking medical treatment at a Company's clinic shall be required to produce the authorised Medical Card or the Clinic's Medical Chit. If the employee is without the card or the clinic's medical chit, he shall be required to pay for the treatment when requested by the clinic.
5.2 The employee shall be required to complete Part A of the Medical Form (Exhibit 8B) which is available at the clinic.
5.3 After the medical treatment, the consulting doctor shall complete and sign Part B of the Medical Form. The clinic has to submit a copy of the Medical Form together with the invoices to the Company.
6.0 Specialist Treatment & Hospitalisation
6.1 Any employee seeking specialist treatment or hospitalisation shall obtain a Letter of Referral from the company's Panel of Clinics, except in the case of an emergency.
6.2 The Letter of Referral shall be presented to Human Resource Dept for the issuance of a Letter of Guarantee.
6.3 Human Resource Dept shall issue a Letter of Guarantee (Exhibit 8C) to the referred Government/Private Hospital. The Letter of Guarantee shall be issued together with the Insurance Claim Form, if any, for Hospitalisation and Treatment. The Insurance Claim Form, if any, shall be completed by the attending physician.
6.4 The completed Insurance Claim Form shall be submitted to Human Resource Dept who will initiate the insurance claims.
7.0 Medical Treatment by Non-Panel Clinics
7.1 In the case of an emergency where the services of a doctor from the Company's Panel of Clinics is not available, an employee may seek medical treatment from any registered medical practitioner. The employee will be required to pay for the medical treatment bills and claim reimbursement from the Company.

of 100
SECTION 15
Page 3 of
3
Revision No:
0
Issued by:
Issue Date:
April 2000
7.2 In exceptional cases where after a reasonable period of treatment by the Company’s Panel of Clinics the employee's health has not shown any improvement, the Company may allow the employee to consult a specific non-panel registered medical practitioner/specialist.
7.3 For the above purposes in subsection 12.6.2, the employee shall be required to provide full details and reasons for the request to Human Resource Dept for approval.
8 Exclusions of the Policy
The company shall not pay for the cost of the following:-
8.2 Any hospitalisation confinement or surgical operation which has not been previously recommended by a legally licensed physician or surgeon appointed by the Company;
8.3 Medical or surgical or other appliances, including spectacles or glasses;
8.4 Suicide or attempted suicide, while sane or insane or intentionally self-inflicted injuries;
8.5 Direct participation in riot or civil commotion; insurrection or way or act of war of fulltime service in any of the armed forces.
8.6 Private flying except as a passenger in any commercial or chartered airline licensed to carry passengers.
8.7 Any dental work, dental treatment, eye examinations, hearing aids or the fitting of any thereof, or cosmetic surgery, plastic surgery.
8.8 Rest cure, veneral disease, AIDS, cancer, sterilisation, nervous or mental diseases or disorders.
8.9 Any expenses relating to pregnancy including childbirth, caesarean operation, abortion, miscarriage, whether natural or accidental and all complications therefrom, sub-fertility and infertility.
8.10 Any expenses incurred in respect of illness, injury or disablement, arising from any fault, carelessness, indiscretion of the employee, participation in or attending any hazardous sport, pursuit or pastime; the performance of any unlawful act; exposure to any unjustifiable hazards, except when endeavouring to save human life; provoked assault, the use of drugs not medically prescribed, congenital anomalies; excessive use of alcohol; or any breach of the peace or disorderly conduct.
8.11 Charges for telephone and television services during hospitalisation.
8.12 Any expenses for treatment in mental cases which have been certified by a Government doctor in charge of mental case.

of 100
Staff Insurance
SECTION 16
Page 1 of
1
Revision No:
0
Issued by:
Issue Date:
April 2000
1.0 Introduction
This section covers the Company's Group Personal Accident and Social Security Organisation (SOCSO) coverage under the Employee's Social Security Act.
2.0 Staff Insurance
2.1 You will be insured by The Company's Group Personal Accident Insurance Policy. The scheme shall provide benefits for death as a result of an accident following the schedule below:-
Group E - Managing Director / Senior Sales Manager (60 x last drawn salary)
Group D - Finance Manager / Senior Sales Manager / Marketing Manager /
Operating Manager (36 x last drawn salary)
Group C - All other Managers, Executives & Supervisors (24xlast drawn salary)
Group B - All others (12 x Last Drawn Salary)
2.2 If you are eligible as stipulated by the Social Security Act, 1969 (Act 4) then you will further be insured under the SOCSO Insurance Scheme.

of 100
Perquisites
SECTION 17
Page 1 of
1
Revision No:
0
Issued by:
Issue Date:
April 2000
1.0 Club Membership
1.1 The Company shall provide senior managers with subsidised membership to a recreation club.
1.2 The Company shall pay the entrance fee up to an amount of RM10,000.00.
1.3 The Company shall also pay up to RM100 monthly subscription for eligible staff.
2.0 Company Car
2.1 The company may, at its discretion, provide company cars to the senior management
2.2 Employees provided with company cars should take good care of the cars. The company will bear all expenses relating to maintenance and repairs but they must endeavour to keep such expenses within the budget allocated to them
2.3 The company may, at its discretion, allows fuel, toll and parking reimbursement, for the senior management against actual receipt
2.4 The management may, at its discretion, provide the senior management employee with free parking at or near the place of the employment

of 100
Sample HR Costs
ABC SDN BHDDETAILED INCOME STATEMENT FOR THE PERIOD ENDED _____________________________ (ACTUAL VS BUDGET) ACTUALBUDGETRMRMHUMAN RESOURCE COSTSHRLE - A.TRIP, DINNER & F.DAY41,810.7562,626.00HRLE - ADVERTISEMENT - GENERAL6,857.670.00HRLE - EPF EMPLOYER - STAFF BONUS3,350.3516,474.00HRLE - EPF EMPLOYER - UNUTILIZED LEAVE(DIRECTOR)0.000.00HRLE - EPF EMPLOYER - UNUTILIZED LEAVE (STAFF)0.005,641.00HRLE - HR DEVELOPMENT FUND46,236.9456,632.00HRLE - PYSCHOMETRIC ASSESSMENT0.000.00HRLE - RETIREMENT BENEFIT82,256.0092,528.00HRLE - RECRUITMENT EXPENSES2,191.8048,456.00HRLE - SALARY - ASSIGNMENT ALLOWANCE5,760.000.00HRLE - SALARY - ALLOWANCE0.000.00HRLE - SALARY - ATTN INCENTIVE1,470.001,384.00HRLE - SALARY - BASIC4,718,282.775,171,936.00HRLE - SALARY - BONUS STAFF30,556.3668,639.00HRLE - SALARY - CAR ALLOWANCE145,353.99148,800.00HRLE - SALARY - CAREER LADDER32,896.0034,232.00HRLE - SALARY - EMPLOYER EPF584,719.93621,112.00HRLE - SALARY - EMPLOYER SOCSO (STAFF)63,695.4567,888.00HRLE - SALARY - EXGRATIA0.000.00HRLE - SALARY - HANDPHONE ALLOWANCE48,636.0457,384.00HRLE - SALARY - MEAL ALLOWANCE AND OTHER9,915.1819,816.00HRLE - SALARY - SPECIAL ALLOWANCE28,944.364,000.00HRLE - SALARY - OVERTIME81,138.84100,544.00HRLE - SALARY - SHIFT ALLOWANCE AND OTHERS1,600.001,600.00HRLE - S.WELFARE - ACCOMM11,384.0013,784.00HRLE - STAFF WELFARE - BROAD BAND687.000.00HRLE - S.WELFARE - FOOD/BEV10,324.0084,040.00HRLE - S.WELFARE - MEDICAL FEES31,043.4132,784.00HRLE - STAFF WELFARE - MOBILE WORKFORCE0.000.00HRLE - STAFF WELFARE -MV INTEREST SUBSIDY0.000.00HRLE - STAFF WELFARE - NURSERY FACILITIES0.000.00HRLE - S.WELFARE - OTHERS68,909.01114,152.00HRLE - S.WELFARE - SRC EXPENSES0.008,664.00HRLE - S.WELFARE - TRAINING73,511.87233,296.00HRLE - S.WELFARE - TRANSPORT429.0014,800.00HRLE - S.WELFARE - UNIFORM11,718.4099,740.00HRLE - S.WELFARE - UNUTILISED LEAVE-STAFF60.0047,006.00HRLI - S.WELFARE - OTHERS-XYZ Subsidiary7,463.400.00HRLR - STAFF WELFARE - FOOD/BEV - YAYASAN 101,709.6850,424.006,252,912.217,278,382.00YEAR TO DATE

of 100
Sample HR Budget - Notes and Comments (part1)
COMPANY NAME: ABC SDN BHD - HRM
BUDGET: HRM ______________ BUDGET
[EXP/3] NOTE TO OPERATING EXPENSES
No A/C JUSTIFICATION/REMARKS
1 2510111610 ENTERTAINMENT (meal expenses)
Signing for- Consultants / Suppliers est … in Canteen / Others 1,000
2 2510112410 GIFTS & PROMOTION
products requested for Consultants, O/sea subsidiaries' staff 400
3 2520110830 COURIER SERVICES 900
4 2520113200 INSURANCE GENERAL
Group Term Life /Critical Illness/PA for 226 pax est only (say 15% increase) 50,000
Group Hospitalization & surgical (say 10% increase) 40,700
Ind Policy (maintenance staff & Bus travel) 4,500
Laptop say 10units x RM5000 x 2.5% + 5% tax + RM10 stamp duty 1,260
Laptop cont 2006 NBV Ms Lim RM80000 x 2.5% + 5% tax + RM10 stamp duty (Feb 0 7 ) 2,200
Grand Total 98,660
5 2520114410 LABOUR CHARGES (Casual Labour - Basic)
:- ERP, ISP project (RM 10,000 x 3 person x 12mth) 360,000
Part timer ( 5 person x RM1000 x 12mths) 60,000 420,000
6 2520114820 MAINTENANCE EQUIP
Actual Jan-Jul 08 = RM755
Forecast 5% increse for 2008 1,360
Laptop say 15 units x RM200/yr 3,000
Others 1,000
5,360
7 2520114890 M.VEHICLE PARKING
Using Admin staff for HRM errands -Salary related matters
120
8 2520116000 PENALTY
Say for late statutory submission 300
9 2520116010 POSTAGE & STAMPS
Forecast 100 letters for 2009 30
10 2520116040 PROF FEES LEGAL
EES prof fees 19,000
11 2520117220 STAMP DUTY
Car loan, laptop etc 300
12 2520117230 STATIONERY & PRINTING
Actual Jan-Jul08 =RM4,482.80 say add 10% increase 8,453
(L/head,A4paper,stickers,handbooks, access card,payslip,leave card etc )
Diary for Staff (226staff*RM12 + 100 pieces) 3,912
Total 12,365
13 2520117240 SUBSCRIPTION FEES
MEF 2,100
MIM 450
SRC - Registration as Non- Profit Organization (Pending for approval) 100
Total 2,650

of 100
142520117610TEL & FAXActual Jan-Jul 08=RM861Forecast 50% increse for 2009 due to Tele-interview2,214 152520117650TRAVELLING & SUBS - LOCAL(A)HRM staff on official duties during non working days (petrol, toll & parking)1,000 (B)HRM staff - Branch visit to Sbh & Swk:- Air ticket RM200.00 x 2trips x 2 Branch AirAsia x 2 pax1,600 :- Airport tax RM100.00 + RM100.00 x 2trips x 2 Branch AirAsia x 2 pax1,600 :- Hotel RM150 x 2 nites x 2 trips x 2 Branches x 2 pax2,400 :- Taxi KLIA RM160 return x 2 trip x 2 Branches x 2 pax 1,280 :- Meal BLD - (RM30 x 2days x 2trips x 2 pax)240 Sub total ***7,120 Grand Total8,120 162520117660TRAVELLING & SUBS - O/SEAS(A)HRM International meeting to Indo/HK etc "one trip per year" :- Air ticket to Indo RM500 x 2 (to&fro) x 2 pax- :- Hotel 2nites x RM120 x 2 pax- :- Taxi KLIA one trip per year x 2 pax- :- O/sea pocket allw RM76 x 2 pax- Sub total 0(B)HRM meeting to Singapore - 2 trips per year:- Air ticket (to&fro) - RM 750 x 2 trips x 2 pax)3,000 :- Hotel 2 nites x RM150 - 2 pax x 2 trips1,200 :- Taxi KLIA (to&fro) - RM 160 return x 2 pax x 2 trips640 :- Meal BLD - (RM30 x 2days x 2trips x 2 pax)240 Sub total 5,080 Grand Total 5,080 172540110000A.TRIP. DINNER (A)Staff Family day:- Say RM100/pax ( 225 satff x 3) 67,500 Sub total67,500 (B)Staff Annual Diner :- Say RM90/pax x (225 staff + 110 Spouse)30,150 External Entertainer say- L/Draw20,000 Venue set up cost1,000 Branch staff invited to attend :- Hotel 5 pax x RM150 twin sharing (5x150)750 Air ticket 5 pax x RM5002,500 Sub total54,400 Grand Total121,900 182540111630EPF- Clerk Bonus - Est based on 2mths sal16,473 192540111680Staff Welfare - Unutilised Leave - EPFSay 12% on RM9063611,281

of 100
202540116900ADVERTISEMENT - GENERAL (Staff Recruitment) Career Fairs ( 4 x RM 4,500)18,000 Advertisement ( Jobstreet / Newspaper - 30 positions x RM380 + 2 ads @ 5k)21,400 Head Hunters [1 position salary 8k x 12mth x 18%]17,280 Employee referral scheme (RM300 / RM 700 - 20/10positions)13,000 Psychometric Assessments (10 pax)3,000 Target sourcing (attend convention)- Total72,680 New *Recruitment Outsource Partnership- 212540117210SALARY ATTN INCENTIVE2,079 (Sbh / Srw : RM 157.5 per month, +10% for 2009) 222540117220SALARY BASICAssume 5% annual & promotion increment. 8,053,634 232540117240BONUS - STAFFAs per listing - Clerk say 2mth137,273 242540117250SALARY CAR ALLOWANCE223,200 Actual : RM193, 200 + (500 x 5 x 12) 252540117251CAREER LADDER51,348 Actual : RM39,348 + (500 x 2 x 12) 262540117260Proposed EPF (@ 15%) - STAFF SALARY (Permanent + Cotract)1,213,670( EPF @ 12% : RM967,156 --> diff : RM 246,514) 272540117280SOCSO107,316 282540117300HANDPHONE ALLOWANCE86,076 (actual : RM68,076 + (300 x 5 x 12) 292540117310SALARY MEAL ALLOWANCE29,728 (Actual : Branch - RM16,008 + [OT]Jan - Aug '08 : RM8,315 - +10% for 2009302540117325Others Allowances- Special AllowanceICT (3000 x 12)36,000 42,000 QAD (500 x 12)6,000 312540117330OVERTIME150,812 (actual Jan - Aug : RM91,401.00 Est '09 + 10%) 322540117340SALARY - SHIFT ALLOWANCE2,400 (Maintenance team : RM200 x 12) 332540117360STAFF WELFARE ACCOMODATIONRefer to sal listing 15,876 Est - F/Liners who stay at relative house while on outstation duties RM50/night4,800 20,676 342540117370STAFF WELFARE FOOD & BEV187,414 Yearly Canteen RM3.10 x (223+6Dir) =RM709.9 x 22day/mth x 12 mths

of 100
352540117390MEDICALPremployment 40new x RM451,800 HRM dept only say 3pax x 12mths X RM501,800 3,600 362540117396Motor Vehicle Assistant programme(Interest subsidy 3% - (max1500*100pax)150,000 372540117410S.WELFARE OTHERS(A)Staff AwardsLong Service awards5 yrs = AM-VP (2x RM5,000 and 9 Exe x RM3,000 37,000 10yrs= 1 Mgr x RM5,000 and 3Exe x RM3,00014,000 15yrs= 2 Mgr x RM5,000 and 5 Exe x RM3,00025,000 76,000 Plaque/certificate/ribbon etc850 76,850 (B)Others Baby gifts say 20pax RM140 products2,800 Hospitalization gifts say 20pax x RM100 products2,000 Wedding angpow say 15pax x RM2003,000 Condolence money say 20 x RM1002,000 Note No more staff interaction funds- Hardship funds est only30,000 CNY angpow 240 x RM102,400 42,200 ( C ) Free Product Sample5,000 Pesta Durian- mooncake (223staff*1box -RM20)4,460 *9,460 128,510 382540117430STAFF WELFARE - SRCYear end reward- Advisor 2pax (RM500+PVRM500)2,000 12 SRC committee (RM500+PV500 evaluated at 60%)7,200 SRC working meal allow, petrol,parking500 SRC O/T 1,000 SRC dinner with Dirs1,600 P/Stationer700 13,000 392540117450STAFF WELFARE TRANSPORTAmpang & Subang (save RM72k)- Sri Muda/ Batu Tiga route (Own Drivers) + Taxi22,200 22,200 402540117460STAFF WELFARE UNIFORM Official Uniform96,500 T-shirt - Star Product Launching (say 270 x RM12)3,240 99,740 412540117480STAFF WELFARE - UNUTILISED LEAVEBased on payout for unutilized leave - frontliner (RM85465.04 x10%)94,012

of 100
42NewSpot Bonus150,000 43NewEPF of spot Bonus18,000 44NewAllow - Petrol14,856 45NewSalary - Retail Outlet Incentive4,862 (Actual Jan - Aug '08 : 2701, +20% for 2009) 46NewSalary - L/Pay (Maint.) ALLOWANCE (say ave 5days/mth)6,600 47NewSalary - Branch Assignment ALLOWANCE11,400 48ProposeStaff Welfare1Medical - RM500 per staff per year include dental & mediacl check111,500 2Kidnergarden/ Nursery Facilities - tranpotation (6000*12mth)- - Subsidy Fees (RM100*50pax*12mth) -- 3Mobile Workforce Scheme (Rm100*50staff)- 415% EPF (3% extra)246,514 ** Justification : Removal of Labour Charges (item 5 - ERP Project - RM 360,000) and Special Alloance (item 30 : paying Corp staff - RM 36,000) = RM396,000 is enough to cover for item 1 & 4 proposed (total of RM358,014) 492620001000PROFIT SHARING - STAFF -- to be confirmed502620001100EPF PROFIT SHARING - STAFF ( -- to be confirmed(excluding Profit Sharing)11,934,738

of 100
Sample HR Variance Report

of 100
Sample Income (P&L) Statement
ABC SDN BHDINCOME STATEMENT FOR PERIOD ENDED _______________________ Dept :040HRMNOTEMTDACTMTDBGTMTDVARMTDVAR%YTDACTYTDBGTYTDVARYTDVAR%TTLBGT(K)BGTBAL(K) SALES000NO BGT000NO BGT00COMMISSION000NO BGT000NO BGT00COST OF SALES000NO BGT000NO BGT00GROSS MARGIN000NO BGT000NO BGT00OTHERS INCOMES000NO BGT979.290979.29NO BGT0-1OPERATING EXPENSESMARKETING & PROMOTION1-205-4,680.004,475.0096-22,832.90-61,260.0038,427.1063-111-89GENERAL & ADMINISTRATION-5,847.74-21,766.0015,918.2673-36,773.86-41,486.004,712.1411-137-100FINANCIAL000NO BGT000NO BGT00HUMAN RESOURCES2-26,348.29-52,131.0025,782.7149-293,801.57-532,896.00239,094.4345-904-610DEPRECIATION-1,317.63-3,220.001,902.3759-7,371.29-19,320.0011,948.7162-39-31TOTAL OPERATING EXPENSES-33,718.66-81,797.0048,078.3459-360,779.62-654,962.00294,182.3845-1,191-830NET PROFIT BEFORE PROFIT SHARING-33,718.66-81,797.0048,078.3459-359,800.33-654,962.00295,161.6745-1,191-831PROFIT SHARING-66,617.74-1,764.96-64,852.78-3,674-94,178.17-8,181.36-85,996.81-1,051-1679NET PROFIT BEFORE TAXATION-100,336.40-83,561.96-16,774.44-20-453,978.50-663,143.36209,164.8632-1,207-753TAXATION000NO BGT000NO BGT00NET PROFIT AFTER TAX-100,336.40-83,561.96-16,774.44-20-453,978.50-663,143.36209,164.8632-1,207-753

of 100
Sample HR Budget
ABC SDN BHDINCOME STATEMENT FOR PERIOD ENDED _______________________ MTDACTMTDBGTMTDVARMTDVAR%YTDACTYTDBGTYTDVARYTDVAR%TTLBGT(K)BGTBAL(K) 39000-00OTHER INCOME000NO BGT979.290979.29NO BGT0-1SUB-TTL30I100 OTHER INCOME000NO BGT979.290979.29NO BGT0-140130-00ADVERTISEMENT-100-3,000.002,900.0097-21,610.30-55,750.0034,139.7061-98-7740200-00CAFETERIA BENEFIT000NO BGT000NO BGT0040700-00DONATION/CONDOLENCE000NO BGT000NO BGT0040910-00GIFTS & PROMOTION000NO BGT0-2002001000040930-00ENTERTAINMENT0-2502501000-500500100-1-141500-00GIFT000NO BGT000NO BGT0044060-00TRAVELLING & SUBS-1050-105NO BGT-1,222.60-500-722.6-145-7-644070-00TRAVELLING & SUBS O/SEAS0-1,430.001,430.001000-4,310.004,310.00100-4-4SUB-TTL40E100 MARKETING & PROMOTION-205-4,680.004,475.0096-22,832.90-61,260.0038,427.1063-111-8940500-00CANTEEN EXPENSES000NO BGT0-1501501000040520-00COURIER SERVICES000NO BGT-367.25-40032.758-1-141700-00INSURANCE GENERAL-5,312.660-5,312.66NO BGT-31,809.59-3,460.00-28,349.59-819-86-5541840-00ISO EXPENSES & AUDIT000NO BGT000NO BGT0042320-00LABOUR CHARGES0-3203201000-1,920.001,920.00100-4-442520-00MAINTENANCE EQUIP-131.67-750618.3382-1,040.02-2,800.001,759.9863-6-542560-00M.VEHICLE PARKING0-1010100-18.2-6041.8700043100-00POSTAGE & STAMPS000NO BGT0-10101000043110-00PENALTY000NO BGT0-3003001000043130-00PROF FEES LEGAL0-19,466.0019,466.001000-19,466.0019,466.00100-19-1943920-00STATIONERY & PRINTING-155.95-550394.0572-2,301.16-9,200.006,898.8475-13-1043930-00STAMP DUTY0-1001001000-2002001000043940-00SUBSCRIPTION FEES-37.5-220182.583-225-1,320.001,095.0083-3-243960-00SUNDRY EXPENSES000NO BGT000NO BGT0044050-00TEL & FAX-209.96-350140.0440-1,012.64-2,200.001,187.3654-4-3SUB-TTL41E100 GENERAL & ADMINISTRATION-5,847.74-21,766.0015,918.2673-36,773.86-41,486.004,712.1411-137-10040120-00A.TRIP. DINNER & FAM DAY221.940221.94NO BGT-73,039.84-151,500.0078,460.1652-204-13143555-00RECRUITMENT EXPENSES0-7507501000-3,000.003,000.00100-5-543700-00SALARY BASIC-14,205.00-19,060.004,855.0025-84,468.47-114,360.0029,891.5326-229-14443710-00SALARY OVERTIME-397.83-640242.1738-2,519.11-3,840.001,320.8934-8-543730-00SALARY BONUS0-559559100-290.18-559268.8248-2-243740-00SALARY CAR ALLOWANCE0-5,350.005,350.001000-32,100.0032,100.00100-64-6443750-00SALARY ATTN INCENTIVE0-60601000-360360100-1-143760-00SALARY MEAL ALLOWANCE-65-1,000.0093594-405-6,000.005,595.0093-12-1243765-00SALARY-CAREER LEADER0-1,000.001,000.001000-6,000.006,000.00100-12-1243770-00EMPLOYER EPF-1,720.00-2,290.0057025-10,315.78-13,740.003,424.2225-27-1743773-00EPF-CASUAL LABOUR000NO BGT000NO BGT0043777-00EPF-EMPLOYER(SALARY BONUS)0-6767100-34.82-6732.18480043780-00EMPLOYER SOCSO-238-2834516-1,428.10-1,698.00269.916-3-243782-00EPF - UNUTILISED LEAVE000NO BGT000NO BGT0043790-00HANDPHONE ALLOWANCE0-2,010.002,010.001000-12,060.0012,060.00100-24-2443796-00SALARY OVERSEAS ALLOWANCE000NO BGT000NO BGT0043797-00SALARY EXGRATIA000NO BGT000NO BGT0043798-00SALARY-SHIFT ALLOWANCE000NO BGT000NO BGT0043799-00SALARY- ASSIGNMENT ALLOWAN0-3003001000-1,800.001,800.00100-4-443800-00STAFF WELFARE TRANSPORT-4,460.00-7,000.002,540.0036-27,401.00-42,000.0014,599.0035-84-5743810-00STAFF WELFARE ACCOMODATION000NO BGT000NO BGT0043820-00S.WELFARE FOOD/BEV-330-3855514-1,980.00-2,310.0033014-5-343830-00STAFF WELFARE TRAINING-8000-800NO BGT-8900-890NO BGT0143840-00STAFF WELFARE UNIFORM-9940-994NO BGT-3,486.00-73,240.0069,754.0095-83-8043850-00MEDICAL-342-190-152-80-1,041.00-1,140.00999-2-143870-00S.WELFARE OTHERS-3,018.40-10,087.007,068.6070-80,382.27-60,522.00-19,860.27-33-121-4143871-00STAFF WELFARE-SRC0-1,100.001,100.00100-6,120.00-6,600.004807-13-743880-00STAFF WELFARE-UNUTILISED L000NO BGT000NO BGT00SUB-TTL43E100 HUMAN RESOURCES-26,348.29-52,131.0025,782.7149-293,801.57-532,896.00239,094.4345-904-61040720-00DEPRECIATION-1,317.63-3,220.001,902.3759-7,371.29-19,320.0011,948.7162-39-31SUB-TTL44E100 DEPRECIATION-1,317.63-3,220.001,902.3759-7,371.29-19,320.0011,948.7162-39-3143720-00SALARY PROFIT SHARING - ST-59,480.13-1,575.86-57,904.27-3,674-84,170.42-7,304.78-76,865.64-1,052-147043721-00SALARY PROFIT SHARING - DI000NO BGT000NO BGT0043775-00EPF SALARY P/SHARING - STA-7,137.61-189.1-6,948.51-3,675-10,007.75-876.58-9,131.17-1,042-2843776-00EPF SALARY P/SHARING - DIR000NO BGT000NO BGT00SUB-TTL45E100 PROFIT SHARING-66,617.74-1,764.96-64,852.78-3,674-94,178.17-8,181.36-85,996.81-1,051-1679TOTAL-100,336.40-83,561.96-16,774.44-20-453,978.50-663,143.36209,164.8632-1,207-753

of 100
Sample HR CAPEX Budget
ABC SDN BHDBUDGET: _________________ NEW CAPITAL EXPENDITURE/FIXED ASSETSDATEA/COFCODEDESCRIPTIONPURCHASERMJUSTIFICATION/REMARKS3110003000Plant & machinery- 3110004000Equip & tool - factory/warehouse- 3110004010Equip & tool - lab- 3110004030Equip & tool - office2,000.00 Estimation3110004040Equip & tool - maintenance- 3110004050Equip & tool - function & events- 3110004500Electrical installation- 3110005000Air conditioner- 3110005500Furnitute & fittings2,000Estimation3110006000Computer HardwareLaptop Scheme - 10 unitsthru out 200950,000Company Laptop SchemeDesktop - 10 units (Contingency thru out 200935,000Desktop 10 units- Contigency Fund Scanner2008 Qtr 1800HR matters eg scanning of staff photos PC Ram -additional 1GB2008 Qtr 1400As actual specified RAM is not compatible & not sufficient for XP operating systemMaybank2e.net Devices2008 Qtr 11,000To assist salary crediting processDesktop -1 unit (HRM)2008 Qtr 13,500Replacement 3110006500Computer SoftwareLaptop Scheme - 10 unitsthru out 200915,000Desktop - 10 units (Contingency Funds)thru out 200915,000Desktop - 1 unit (HRM)2008 Qtr 11,5003110007000Motor vehicle- 126,200.00

of 100
Sample HRDF Budget Report
HRDF ReportLast updated:31/07/0909/09/09Jul-09Aug-09Sep-09Oct-09Nov-09Dec-09As @ 31/07/09As@24/08/09Total HRDF Levy b/f120,074.07 118,304.08 - - - - Monthly Contribution to HRDF4,144.01 8,373.27 - - - - Monthly HRDF Claimed5,914.00 - - - - - Total HRDF Levy b/f118,304.08 126,677.35 - - - - Reserve Levy for SBL Scheme Reimbursement68,666.3084,595.97- - - - Total HRDF Levy Available for Future Usage49,637.7842,081.38- - - - Approved claim & waiting for cheque from HRDF 30,862.74 - - - - Completed claim form submitted to HRDF 10,102.30 - - - - Pending for receipt from the vendor 27,970.80 - - - - Training in progress 15,660.13 - - - - Total84,595.97 - - - - Month

of 100
Employee Benefits and Income earned by Staff exempted from Income Tax With effect from YA 2008, employees are given tax exemption on allowances, benefits in kind and perquisites that received from their employer as follows: (a) perquisites in relation to travel allowance, petrol card, petrol allowance or any of its combination for travelling between the home and work place up to RM2,400 per year. (b) perquisites in relation to travel allowance, petrol card, petrol allowance or toll rate or any of its combination for travelling for official duties up to RM6,000 per year. (c) parking rate or parking allowance. (d) meal allowance. (e) child care allowance of up to RM2,400 a year. (f) gifts and monthly bills for fixed line telephone, mobile phone, pager, or broadband. (g) the amount of subsidy on interest of housing, education or car loan shall be determined in accordance with the following formula: A x (B / C) A – difference between the amount of interest to be borne by the employee and the amount of interest payable by the employee in a basis period for a year of assessment; B – the total aggregate of balance of the principal amount of the housing, education or car loan taken by the employee in a basis period for a year of assessment or RM300,000.00, whichever is the lower; and C – the total aggregate of the principal amount of the housing, education or car loan taken by the employee. (h) medical benefits exempted from tax be extended to include expenses on maternity and traditional medicines. (i) discounted price for consumable business products of the employer up to RM1,000 per year. (j) discounted price for services provided by the business of the employer and for the benefit of the employee, spouse and child of the employee. The above exemptions are not extended to an employee where the employee has control over his employer. All the above proposals are effective from Y/A 2008 except for item (a) which is effective from Y/A 2008 to Y/A 2010.

of 100
Malaysia Income Tax Guide 2014 Whenever the tax season rolls around (that’s 1st March to 30th April), there is inevitably a sense of worry amongst the public because there are many financial, technical and even legal considerations to be taken into account when filing in at Lembaga Hasil Dalam Negeri (LHDN or Hasil) or online. Two key things to remember: 1. Tax rates are Progressive, so you only pay the higher rate on the amount above the rate (i.e. you will never have less “net income after tax” by earning more!). 2. Tax rates are on Chargeable Income, not salary or total income. Chargeable income is calculated after tax exemptions and tax reliefs (more below). First off, we start with the table for personal income tax rates in Malaysia for the Assessment Year 2013, so everyone would be able to cross-check the tax bracket and the amount of tax needed to pay. Chargeable Income (RM) Calculations (RM) Rate (%) Tax(RM) 0 - 2500 On the first 2,500 0 0 2,501 - 5,000 Next 2,500 0 0 5,001 - 10,000 On the first 5,000 Next 5,000 2 0 100 10,001 - 20,000 On the first 10,000 Next 10,000 2 100 200 20,001 - 35,000 On the first 20,000 Next 15,000 6 300 900 35,001 - 50,000 On the first 35,000 Next 15,000 11 1,200 1,650 50,001 - 70,000 On the first 50,000 Next 20,000 19 2,850 3,800 70,001 - 100,000 On the first 70,000 Next 30,000 24 6,650 7,200

of 100
Chargeable Income (RM) Calculations (RM) Rate (%) Tax(RM) Exceeding 100,000 On the first 100,000 Next RM 26 13,850
Budget 2014 update: 1-3% reduction in tax rates but only after 2015! Many would have heard about the announcement in the Malaysia Budget 2014 (on 25th October 2013), where personal income tax rates are being reduced across the board by 1-3% for the assessment year 2015 (filing in March/April 2016). As it doesn’t affect Assessment Year 2013 (or even 2014) tax returns, we’ve put it in this accordion, but we’ll come out with a full guide once its closer to the date.

of 100
Chargeable Income Tax Rate (2013 and 2014) Cumulative Tax Tax Rates (2015 - ) Cumulative Tax Saving From RM1 - RM5,000 0% RM0 0% RM0 - From RM5,001 - RM20,000 2% RM300 (RM0 after RM400 rebate) 1% RM150 (RM0 after RM400 rebate) - From RM20,001 - RM35,000 6% RM1,200 (RM800 after RM400 rebate) 5% RM900 (RM500 after RM400 rebate) RM300 From RM35,001 - RM50,000 11% RM2,850 10% RM2,400 RM450 From RM50,001 - RM70,000 19% RM6,650 16% RM5,600 RM1,050 From RM70,001 - RM100,000 24% RM13,850 21% RM11,900 RM1,950 From RM100,001 - RM250,000 26% RM52,850 24% RM47,900 RM4,950 From RM250,001 - RM400,000 26% RM91,850 24.5% RM84,650 RM7,200 RM400,001 and Above 26% 25%

of 100
How Much Do I Have To Earn Before Paying Income Tax? For most residents of Malaysia, the key figure to take note of is about “RM36,704 per year (about RM3,060 per month)” which is inclusive of all benefits, allowances, bonuses, overtime and commissions. If you’re earning anywhere below that figure, then there’s no need for you to open up a file for tax to be deducted from your income (while the con is that you’re not earning as much as you’d like, the pro is that there’s less hassle from a tax perspective!). How did we determine that any income below RM36,704 (about RM3,060 per month) is not taxable? Take a look at our quick guide to the tax cut-off point for Malaysia below. However, if you do earn above that, you need to have a tax file opened with your income tax automatically deducted from your income (welcome to the world of big money!). Some extra notes about income tax that you may find interesting: 1) For non-residents of Malaysia (people who have been living in the country for less than 182 days per year), the tax rate has been set at 26% on all the income that has been earned in Malaysia. regardless of your citizenship or nationality. However, there are some exceptions to the matter. Certain professions such as public entertainers (15%) as well as those who receive payments for services in connection with the use of property or installation, payments for technical advice and rent (10%) are taxed differently. 2) You may still be overpaying or underpaying on your tax, even if you are a salaried worker or civil servant under a Potongan Cukai Bulanan (PCB), a Monthly / Schedular Tax Deduction (MTD) system or if you are self-employed / own your own business. What is Chargeable Income in Malaysia? As mentioned before, the tax rates above are effected on a person’s Chargeable Income (rather than salary or total income, in fact, the amount of the chargeable income is usually much lower). Now I’m sure many of you first-timers may be wondering what your “Chargeable Income” is. You take the following equation and apply where necessary:

of 100
Chargeable Income = Taxable income – Tax exemptions – Tax Reliefs Check out the example below for a general idea: You are earning a RM40,000 salary, you have a RM2,000 local bank interest income as well as RM13,000 from property rental income a year. That should bring your chargeable income to RM55,000 correct? Nope, that’s not the way to go about it. Even without taking into account the many tax reliefs available, every taxpayer gets the standard RM9,000 individual tax relief as well as a maximum relief of RM6,000 for EPF contributions. That means your EPF contribution is calculated at 11% of RM40,000, i.e. RM4,400. Also, while “interest” is taxable income (more on this below), all local bank interest income is tax exempted (lucky us!). Therefore, your Chargeable Income (by applying the aforementioned formula) will actually be: RM55,000 – RM2,000 – (RM 9,000 + RM4,400) = RM39,600. And there you have it! A much lower figure than which you initially thought would be the amount! Taxable Income in Malaysia Taxable income actually refers to the “base upon which an income tax system imposes tax”. In general, the Lembaga Hasil Dalam Negeri (LHDN) organisation includes all kinds of earnings which the Malaysian taxpayers have to pay for, but which is reduced by expenses and other deductions. Some of them include the following: 1. General Taxable Income a) Business or Profession b) Employment c) Dividends d) Interest (except bank deposit interest) e) Discounts f) Rent g) Royalties h) Premiums i) Pensions

of 100
j) Annuities k) Others 2. Perquisites Perquisites are taxable benefits that can be converted to cash and are given to an employee from his/her employer. Examples of which include: 1) Bill Claims If your employer pays your utility, mobile phone, income tax, road tax or car insurance tax bills for you, then the amounts paid are considered to be perquisites and are taxable. Example: John’s company pays his RM100 mobile phone bill. Then the amount of RM100 is a perquisite and is taxable 2) Company Credit Card If your employer provides you with a credit card to make purchases on behalf of the company, but you use that card instead for personal use, then any retail purchases you make including the annual fee of the credit card are considered to be perquisites and are taxable. Example: Tom uses the company credit card which has an annual fee of RM200, to purchase a flat screen TV worth RM5000 for his home. Then the amount of RM5200 is a perquisite and is taxable. 3) Loan from Company If your employer provides you with a interest free loan and the source of funds for the loan is derived from extra company funds, then the loan is considered to be a perquisite and is taxable. Example: Leonard’s boss grants him an interest free loan of RM6000 using extra company funds. Then the amount of RM6000 is a perquisite and is taxable.

of 100
Or if your employer provides you with a loan with funds taken from a third party source such as a bank etc. Then the difference in interest paid by the employee and the employer is considered to be a perquisite and is taxable. Example: Keith’s boss gives him a loan with 4% interest using company funds taken from a local bank. The bank in turn, charged the company 8% interest for the initial loan. If the company paid a total of RM900 of interest payments to the bank while Keith paid a total of RM460 in interest payments to the company. Then the amount of RM900 – RM460 = RM440 is considered to be a perquisite and is taxable. Or if your employer agrees to waive a loan in exchange for services performed, then the loan amount is a perquisite and is taxable. Example: Eddie’s boss gives him a study loan of RM30,000 and agrees to waive the loan if he stays and works with the company for a minimum of 36 months. If Eddie successfully completes this agreement and the loan is waived, then the amount of RM30,000 is considered a perquisite and is taxable 4) Sponsored Club Membership If your employer provides you with an individual club membership (not corporate), then the cost of the membership is considered to be a perquisite and is taxable. Example: Bruce is provided with an individual country club membership by his company. The annual fees of the membership are RM400. Then the amount of RM400 is a perquisite and is taxable. 5) Sponsored Child Tuition Fees If your employer pays for your child’s tuition fees, then the amount paid is considered to be a perquisite and is taxable. Example: Shawn’s company pays for the school fees of his son, Ross. The annual school fees amount to a total of RM10,000. Then the amount of RM10,000 is a perquisite and is taxable. 6) Company Insurance Premiums

of 100
If your employer pays for an insurance premium that covers yourself and your immediate family. Then the annual amount of premium paid is considered to be a perquisite and is taxable. Example: Richard’s company pays for an insurance package that covers himself and his wife and five children. The annual amount of premium paid is RM900. Then the amount of RM900 is a perquisite and is taxable. 7) Personal Driver, Guard or Maid If your employer allows reimbursements on the salary of personal drivers, guards or maids, then the amount that is reimbursed is considered to be a perquisite and is taxable. Example: Colin’s company allows him to reimburse 40% of the cost to hire his personal driver, Carlo. Carlo’s annual salary is RM25,000. Then the amount of RM10,000 is a perquisite and is taxable. 8) Special Staff Discounts If your employer grants special staff discounts for certain products with monetary value such as cars, furniture, electronics etc. Then the amount of discount given is considered to be a perquisite and is taxable. Example: Nathan’s company, BMW, grants him a special employee discount of 15% if he chooses to buy a BMW. If Nathan buys a BMW worth RM250,000 but only pays RM212,500 due to the 15% discount. Then the discount amount of RM37,500 is considered to be a perquisite and is taxable. 9) Gift Vouchers If your employer gives you gift vouchers with monetary value during festive seasons such as Chinese New Year or Hari Raya. Then the monetary value of such gift vouchers is considered to be a perquisite and is taxable. Example: Donald’s company awarded him a RM100 Tesco voucher during Chinese New Year. He subsequently used that voucher to pick up groceries for his family. The amount of RM100 is considered to be a perquisite and is taxable.

of 100
3. Benefits in Kind (BIK) Benefits in Kind (BIK) are taxable benefits that cannot be converted to cash and are given to an employee from his/her employer. Since Benefits in Kind do not have a direct monetary value, there are two ways to determine the value of a BIK, the formula method or the prescribed value method. Examples of Benefits in Kind include company provided automobiles, lodging and household furnishing & electronics. Formula Method: Value of asset = Annual Value of Benefit Life span of asset Prescribed Value Method: Assigns a predetermined value from a list sorted by classification of asset. Example: Company Automobile If your employer provides you with an automobile to use on the job and privately, then the asset is considered to a benefit in kind and is taxable by the formula method. Any petrol costs and toll bridge costs which are subsidized by the employer are included in the total taxable amount as well. Example: Christopher’s company provides him with a car worth RM81,000 to use to get to work and travel around in his spare time. He passes by 1 toll bridge on his way to work which charges RM1.50. Any toll payments he makes are subsidized by his employer. In addition, his petrol costs are subsidized by his employer as well. In 2013, he made a total of RM1,800 in toll payments and RM3,000 in petrol payments. For cars, the prescribed average lifespan is set at a fixed 8 years. Formula Method: 81,000 X 80% (20% abatement represents the value of the car when returned to the employer) 8 = RM8,100 + RM1,800 (toll payments) +RM3,000 (petrol payments) = RM12,900

of 100
Prescribed Value Method: Cost of Automobile (RM) Annual Prescribed Benefit of Automobile (RM) Annual Prescribed Benefit of Petrol (RM) Up to 50,000 1,200 600 50,001 - 75,000 2,400 900 75,001 - 100,000 3,600 1,200 100,001 - 150,000 5,000 1,500 150,001 - 200,000 7,000 1,800 200,001 - 250,000 9,000 2,100 250,001 - 350,000 15,000 2,400 350,001 - 500,000 21,250 2,700 500,001 and Above 25,000 3,000 Under the prescibed value method, since the value of the car falls between RM75,001 and RM100,000, then the amount taxable is RM3,600. In addition, his petrol costs are also set at a predetermined RM1,200. Total Cost: RM3,600 + RM1,200 + RM1,800 (toll payments) = RM6,600

of 100
Tax Exemptions on Income in Malaysia Tax exemptions in Malaysia come in many forms, and can be defined as “a personal allowance or specific monetary exemption which may be claimed by an individual to reduce taxable income”. Generally speaking, it means they are income items which can be omitted from (we refrain from using the word deductions here, because tax reliefs are also ‘deducted’ from your taxable income) the individual’s paycheck. Below you will find a full list of those items along with their respective descriptions, so that you will get a general idea of what to expect: 1) Leave Passage Leave passage within Malaysia not exceeding three times in a year and one leave passage outside Malaysia not exceeding RM3,000. 2) Medical and dental benefit With effect from the year of assessment 2008, medical benefits exempted from tax is expanded to include maternity expenses and traditional medicine like ayurvedic and acupuncture without limit. 3) Retirement gratuity The full amount of gratuity received by an employee on retirement from employment is exempt if: i. The Director General of Inland Revenue is satisfied that the retirement is due to ill health; ii. Retirement on or after reaching the age of 55 years/compulsory age of retirement and the individual has worked 10 years continuously with the same employer or companies within the same group; iii. The retirement takes place on reaching the compulsory age of retirement pursuant to a contract of employment or collective agreement at the age of 50 but before 55 and that employment has lasted for 10 years with the same employer or with companies in the same group.

of 100
4) Gratuity paid out of public funds Gratuity paid out of public funds on retirement from an employment under any written law. 5) Gratuity paid to a contract officer Gratuity paid out of public funds to a contract officer on termination of a contract of employment regardless of whether the contract is renewed or not. 6) Compensation for loss of employment This is payment made by an employer to his employee as compensation for loss of employment either before or after the date of termination. This compensation is exempted from tax. If compensation received is due to ill health. Compensation received in other cases: i. Termination before 1st July 2008 – exemption of RM6,000 for every completed year of service with the same employer or with companies in the same group. ii. Termination on or after 1st July 2008 – exemption of RM10,000 for every completed year of service with the same employer or with companies in the same group Compensation received by a director (not service director) of a Control Company is fully taxable. 7) Pensions Pensions received by an individual are exempt under the following conditions: i. He retires at the age of 55 or at the compulsory age of retirement under any written law; or ii. If the retirement is due to ill health and the pension is received from the government or from an approved pension scheme. For an employee in the public sector who elects for optional retirement, his pension will be taxed until he attains the age of 55 or the compulsory age of retirement under any

of 100
written law. Where an individual receives more than one pension, the exemption is restricted to the highest pension received. 8) Death gratuities Monies received as death gratuity is fully exempted from income tax. 9) Scholarships Any monies paid by way of scholarship to an individual whether or not in connection with an employment of that individual is exempted from income tax. 10) Cultural performances Money received under this category is exempted from tax on condition it is approved by the Minister. 11) Interest Income in respect of interest received by individuals resident in Malaysia from money deposited with the following institutions is tax exempt with effect from 30 August 2008: i. A bank or a finance company licensed or deemed to be licensed under the Banking and Financial Institutions Act 1989; ii. A bank licensed under the Islamic Banking Act 1983; iii. A development financial institution prescribed under the Development Financial Institutions Act 2002; iv. The Lembaga Tabung Haji established under the Tabung Haji Act 1995; v. The Malaysia Building Society Berhad incorporated under the Companies Act 1965; vi. The Borneo Housing Finance Berhad incorporated under the Companies Act 1965. 12) Dividend The following dividends are exempt from tax: i. Dividends received from exempt accounts of companies.

of 100
ii. Dividends received from co-operative societies. iii. Dividends received from a unit trust approved by the Minister of Finance such as Amanah Saham Bumiputra. iv. Dividends received from a unit trust approved by the Minister of Finance where 90% or more of the investment is in government securities. 13) Royalty Royalties received in respect of the use of copyrights/patents are taxable if they exceed the following exemption limits: Types of Royalty Exemption (RM) Publication of artistic works / recording discs / tapes 10,000 Translation of books / literary works 12,000 Publication of literary works / original paintings / musical compositions 20,000 However, the exemption stated above does not apply if the payment received forms part of his emoluments in the exercise of the individual’s official duties. 14) Income Remitted from Outside Malaysia With effect from the year of assessment 2004, income derived from outside Malaysia and received in Malaysia by a resident individual is exempted from tax. 15) Fees or Honorarium for Expert Services With effect from the year of assessment 2004, fees or honorarium received by an individual in respect of services provided for purposes of validation, moderation or accreditation of franchised education programmes in higher educational institutions is exempted. The services provided by an individual concerned have to be verified and acknowledged by the Malaysian Qualifications Agency (MQA). However, the exemption does not apply if the payment received forms part of his emoluments in the exercise of his official duties.

of 100
16) Income Derived from Research Findings With effect from the year of assessment 2004, income received by an individual from the commercialization of a scientific research finding is given tax exemption of 50% on the statutory income in the basis year for a year of assessment for 5 years from the date the payment is made. The individual scientist who received the said payment must be a citizen and a resident in Malaysia. The commercialized research finding must be verified by the Ministry of Science, Technology and Environment. 17) Company Special Service Awards With effect from the 2007 year of assessment, a tax exemption of up to RM1,000 has been allocated for company special service cash or prize awards 18) Travelling Allowances Travelling allowances of up to RM6,000 for petrol and tolls are granted a tax exemption if the vehicle used is not under ownership of the company. 19) Benefits in Kind Exemptions Certain Benefits in Kind pertaining to consumable services are not eligible for taxation. Consumable Services Example: Dental care, child care benefits, food & drinks, special arranged transportation between pick-up points and special discounts for consumable products that cannot be resold (such as food or toiletries etc.) What Are Tax Reliefs? What about a tax relief? It is defined as “an amount that can be deducted from a person’s annual income to reduce the amount on which tax is paid”. To describe it in a more clear and concise manner, it is actually a way for you to lessen your chargeable income.

of 100
Let’s say you took home a monthly paycheck of RM40,000 from your company in 2013 and if there were no tax exemptions or reliefs, your chargeable income will remain the same and your tax for the year would have been in the 11% bracket. Now say the Government decides that all Residents of Malaysia should get a personal tax relief of up to RM9,000 per year. Your chargeable income will now be RM31,000 which means that your tax would be in the 6% bracket. These are the following reliefs available for Malaysian Residents: Included in MTD system RM Self and Dependent 9,000 Life insurance and EPF 6,000 Husband/Wife/Alimony Payments 3,000 Ordinary Child relief (per child) 1,000 Total > 15,000 Not usually included in MTD / PCB system but relevant to most taxpayers RM Interest expended in 2013 to finance purchase of residential property dated 2010 (but interest payments starting in 2011 only) 10,000 Net saving in SSPN's scheme 6,000 Education Fees (Individual) 5,000 Updated: PRS Voluntary Contribution 3,000 Purchase of personal computer (every 3 years) 3,000 Insurance premium for education or medical benefit 3,000 Special relief for tax payers earning an income of up to RM8,000 a month (RM96,000 anually). Only applicable for the 2013 year of assessment. 2,000 Purchase of books, journals, magazines and publications 1,000

of 100
Included in MTD system RM Complete medical examination 500 Purchase of sport equipment for sport activities 300 Total 29,300 Not included in MTD system but relevant to certain taxpayers RM Disabled Individual 6,000 Basic supporting equipment (for disabled self, spouse, child or parent) 5,000 Medical expenses for serious diseases 5,000 Disabled child 5,000 Medical expenses for parents 5,000 Child age 18 years old and above, not married and pursuing diplomas or above qualification in Malaysia @ bachelor degree or above outside Malaysia in program and in Higher Education Institute that is accredited by related Government authorities 6,000 Disabled Wife / Husband 3,500 Child age 18 years old and above, not married and receiving full-time tertiary education 1,000 Premium on new annuity scheme or additional premium paid on existing annuity scheme commencing payment from 01/01/2010 (amount exceeding RM1,000 can be claimed together with life insurance premium) 1,000 Total > 35,500 Tax Deductions vs Tax Reliefs Most of the time people get confused between Tax Deductions and Tax Reliefs, and its easy to see why. They are for the most part the same thing, as they both allow you to reduce your Chargeable Income (that is, before you even start looking at tax rate tables). In fact most people worldwide use both terms interchangeably, and LHDN goes one step further and classifies Tax Deductions as a reduction in your Chargeable Income as a result of Gifts or Donations.

of 100
As a rule of thumb, you can deduct up to 7% of your Taxable Income for gifts to charities and institutions which are approved by the government (not all charities are approved, so be sure to find out before you donate away!), unless you are giving to a few selected government-related bodies, where there is less restrictions on the amount deductible from your income. For example, if you earned RM60,000 this year, and donated RM5,000 to an approved charity, you may deduct RM4,200 (ie. 7% of RM60,000) off your chargeable income, in addition to all those reliefs above. What are the Tax Rebates in Malaysia for 2014? Some people will be having the question of how is a tax rebate different from a tax relief? A tax relief is a reduction in your chargeable income (ie. before you calculate tax) whereas a tax rebate is a reduction in your tax expenseafter you have calculated your tax for the year. Tax rebates (or also known as “tax refunds” but done automatically rather than actually refunded to you). Simply put, there are income tax rebates for Malaysian taxpaying citizens who are having a chargeable income of less than RM35,000 which is RM400. There is also an additional RM400 rebate for married couples who have a chargeable income of less than RM35,000 per year and are eligible for the RM3,000 wife / husband / alimony relief. To give a quick calculation example for tax rebates: Taxable Income: Salary of RM45,000 a year Chargeable Income: RM45,000 – RM9,000 Personal Relief – RM2,000 One-off 2014 relief – RM4,950 EPF relief =RM29,050. Tax calculated using Income Tax Tables (without counting any rebates): RM843 Tax Payable: RM843 – RM400 rebate = RM443 In the above example, you were eligible for the RM400 tax rebate because your Chargeable Income was less than RM35,000 (it was RM29,050 in that example). Another type of tax rebate, but which is only applicable for Muslim citizens, is the zakat / fitrah. Zakat is a compulsory payment for charity and considered to be compulsory as it is one of the five pillars in Islam. It can be calculated via the Muslim taxpayer’s

of 100
acquired wealth or income. Zakat Fitrah, on the other hand, can be considered to be a small, compulsory levy that is imposed upon Muslim taxpayers only. It used to be calculated in the olden days using a pack of rice grains (one pack is equivalent to approximately 2.7 kg) but in the modern days, it is calculated based on the equivalent price of this pack rice grains. You can read all about Zakat and the various types that exists in our guide Zakat in Islam. So… why is RM36,704 the cut-off point to pay tax? Assuming that you made RM36,704 in 2013… Chargeable Income Your Chargeable Income = Your taxable income – (Standard RM9,000 individual tax relief + 11% EPF Contribution of your salary + Special tax relief of RM2,000 per month) which means Your Chargeable Income = RM36,704 – (RM9,000 + RM4,037 + RM2,000) = RM21,667 Based on the tax rate table above, RM21,667 would be taxed RM300 on the first RM20,000 and RM100 on the remaining RM1,667 which brings it up to about RM400 in tax. RM400 Rebate After taking into account the RM400 rebate for those with a chargeable income of RM35,000 or less, you’ll be paying RM400 – RM400 = RM0 (no tax, yay!) PCB / MTD System: Has your employer paid too much tax for you? First off, do you know what the words “PCB / MTD” mean? The words are actually acronyms for “Potongan Cukai Bulanan / Monthly Tax Deductions”. How this works is that your employer will automatically deduct a certain amount from your salary every month to pay for tax on your behalf, going towards paying your tax for the year. This type of deduction is different from the basic Employees Provident Fund (EPF) and Social Security Organization (SOCSO) monthly deductions. Therefore, one can sum up that the MTD is calculated from one’s gross salary minus the EPF deductions of up to RM6,000 per year. If you were to take a closer look at the sum of the total MTD for the year, you will realise that the figure will be very close to your

of 100
actual tax expense for the year, but given that your company has no idea of your additional reliefs other than being married or having children (such as Books, Sporting equipment etc.), they are very likely to have been overpaying for you. Even without taking into account those extra reliefs, the PCB/MTD schedules aren’t 100% accurate (and typically overpay tax on your behalf), as we will see shortly below: Salary Gross Salary MTD Salary MTD Deduction Actual Tax Expense Paid too much / (little) Monthly Amount RM3,500 RM3,115 RM34 RM23.55 RM10.45 Total Amount for 2013 RM42,000 RM37,380 RM408 RM282.60 RM125.40 Final Reminder The 2013 tax assessment year follows the calendar year, so the 2013 tax year is effective from 1st January 2013 to 31st December 2013. Taxpayers can start submitting their income tax return forms for the year of assessment 2013 through e-filing as well. The due date for the submission of return forms are as follows: 1) Employers (Form E) is 31 March 14 2) Residents and non-residents with non-business income (Form BE and M) is 30 April 14 3) Residents and non-residents with business income (Form B and M) is 30 June 14 4) Partnerships (Form P) is 30 June 14 Finally, do take note that you must keep records for 7 years from the date of filing so don’t throw away any receipts or evidence of tax reliefs, keep them in a file sorted by tax year.

(BridgeKnowle) Year End Checklist for HR - Companion WorkBook

(BridgeKnowle) Year End Checklist for HR - Companion WorkBook

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (6)

Ähnlich wie (BridgeKnowle) Year End Checklist for HR - Companion WorkBook

Ähnlich wie (BridgeKnowle) Year End Checklist for HR - Companion WorkBook (20)

Mehr von Kenny Ong

Mehr von Kenny Ong (20)

Kürzlich hochgeladen

Kürzlich hochgeladen (20)

(BridgeKnowle) Year End Checklist for HR - Companion WorkBook