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GPMYS: Global Payroll Malaysia Legislative Changes for Tax Year 2018-2019 (Doc ID 2334555.1)

Last updated on FEBRUARY 05, 2019

Applies to:

PeopleSoft Enterprise HCM Global Payroll Malaysia - Version 9.1 to 9.2 [Release 9]
Information in this document applies to any platform.

Details

 The intent of this document is to describe solutions for problems or questions related to Global Payroll Malaysia Legislative Changes for Tax Year 2018-2019 This solution applies to customers on PeopleSoft Release {9.1 & 9.2}. This is a living document and will be updated as new solutions are created; please review thoroughly on a regular basis.

(Last updated March 13th 2018) Summary Table - see below for details:

Please see table below for details.

Legislative ChangeEffective DateAdditional InfoP1 Patch Fix Target DateTargeted into PUM Image/Patchset
Reduction of Individual Income Tax Rates Jan 2018

As a measure to increase the disposable income of the middle income group and to address the rising cost of living, the government of Malaysia has proposed that individual income tax rates for resident individuals be reduced by 2 percentage points for the 3 chargeable income bands

Release 9.2: Patch 27129037

Release 9.1: Patch 27127811

 

HCM 9.2.025

GP 9.1 Update 2018-A


 

EPF Default Employee Contribution Rates Reverted Back Jan 2018 An earlier legislative update effective 1st March 2016 had the Employees Provident Fund (EPF) reduce the statutory contribution rate for employees from 11% to 8% for employees below age 60 and that of employees above age 60 from 5.5% to 4% starting from March 2016 wage/salary until December 2017. From January 2018 this rate will be reverted back to 11% and 5.5% respectively.

Release 9.2: Patch 27129037

Release 9.1: Patch 27127811


HCM 9.2.025

GP 9.1 Update 2018-A


 

EMPLOYMENT INSURANCE SYSTEM Jan 2018 The Malaysian Government has formulated an Act to provide for the Employment Insurance System to be administered by the Social Security Organization. The Act provides certain benefits and a re-employment placement program for insured persons in the event of loss of employment.

Release 9.2: Patch 27251350

Release 9.1: Patch 27251318

HCM 9.2.025

GP 9.1 Update 2018-A

EMPLOYMENT INSURANCE SYSTEM (EIS) CHANGES EFF JAN 2018 Jan 2018 Making below changes to the EIS (Employment Insurance System) for Malaysia.

1. Exclude the foreign worker from EIS. Check if there is a record in SOCSO
table for the employee, based on this we will calculate EIS.

2. Employee attains 57 years. Remove the condition for hire date mentioned in
the formula instead we will use the Payment Date for Duration Element, to
check employees age of 57 years and above.

Release 9.2: Patch 27405962

Release 9.1: Patch 27440783

HCM 9.2.026

9.1 a P1 is posted

EMPLOYMENT INSURANCE SYSTEM (EIS) FORMS SIP2 AND SIP2A   The reports for EIS where made available in the official website of PERKESO and the following two forms need to be delivered as part of the solution: Form SIP 2, Form SIP 2A

Release 9.2: Patch 27467632

POC patch 9.2: Patch: 27521374

Release 9.1: Patch 27467548

HCM 9.2.026

9.2 a POC is posted

9.1 a P1 is posted

EMPLOYMENT INSURANCE SYSTEM (EIS) CONTRIBUTION TEXT FILE   The Social Security Organization of Malaysia has released a text file format to report the contributions of Employment Insurance System (EIS). This will be the sum of employee and employer contribution.

Release 9.2: Patch 27543158

Only for 9.2 this patch is released. 9.1 is not supported at the time this feature is announced.

HCM 9.2.026

 To stay up with the legislative changes that will impact your PeopleSoft Application visit https://blogs.oracle.com/psftlegupdates/

 

Actions

You need to apply the critical patches / GP Updates whenever their legislative fixes are posted.

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