MANAGEMENT SERVICES DIVISION

MANAGEMENT SERVICES DIVISION

Financial Matters

Contact Info

Management Services Division (MSD) 
Level 3, Rectory Building
International Islamic University Malaysia
P.O. Box 10,
50728 Kuala Lumpur,
Malaysia


+603-6196 5556


+603-6196 4998
msd@iium.edu.my

Financial Matters




ANNUAL SALARY INCREMENT

The date of processing of annual salary increment (ASI):

MONTH

ELIGIBLE STAFF

January        

For staff who are appointed either in the month of January, February or March

April

For staff who are appointed either in the month of April, May or June

July    

For staff who are appointed either in the month of July, August or September

October    

For staff who are appointed either in the month of October, November or December

            Note: ASI date may change due to various reasons

ELIGIBILITY FOR PAYMENT OF ANNUAL SALARY INCREMENT:

  • Has served at least 9 months
  • Annual Performance Appraisal Report (APAR) >60%
  • Academic Progress Report (APR) for staff on study leave for >6 months in the year of ASI assessment
  • Sabbatical Leave Report (SLR) for staff on sabbatical leave for >6 months in the year of ASI assessment
  • Asset Declaration Form B

INELIGIBLITY FOR THE ANNUAL SALARY INCREMENT:

  • On unpaid leave for personal reason for >180 days in a year
  • No submission or incomplete submission of required documents without reasonable cause
  • Basic salary received has reached the maximum value of the salary grade
  • As part of the punishment as decided by the Staff Disciplinary Committee
  • No backdated payment of ASI for any submission beyond the stipulated period without reasonable cause

EMPLOYEES PROVIDENT FUND (EPF)

Link to KWSP Portal

The University and staff (Malaysian and Permanent Residents) who are below the age of 60 years old shall make compulsory contributions to the EPF in accordance with the present government scales as follows.

 

Contributor      

Salary RM5,000

and below per month  

Salary above RM5000

per month

Staff

11% or 8%

11% or 8%

University

13%

12%


SOCSO CONTRIBUTION

Link to PERKESO Portal

Types and Categories of Contribution:

First Category

(Employment Injury and Invalidity Schemes)

  • All employees who have not attained 60 years of age are required to contribute under the first category, except those who have attained 55 years of age and have made no prior contributions before they reach 55 years. (Amendment Act w.e.f. 1 January 2013).
  • The rates of contribution under this category comprise 1.75% employer’s share and 0.5% employee’s monthly wages.

Second Category

(Employment Injury Scheme)

  • For employees aged 60 years old and above and are still working
  • For employees aged above 55 years old when they first register and contribute to SOCSO
  • Insured Person receiving Invalidity Pension and still working and receiving less than 1/3 of the average monthly wages before the invalidity
  • Under this Category, the contribution is paid by the employer for the Employment Injury Scheme
  • The rate of contribution under this category is only 1.25% of the employee’s monthly wages solely borne by the employer.

The table of monthly contribution rate can be viewed at :https://www.perkeso.gov.my/index.php/en/social-security-protection/employer-employee-eligibility/rate-of-contributions

INCOME TAX

Link to LHDN Malaysia







Income Tax Deduction

The University will remit to the Inland Revenue Board income tax payable by staff in accordance with the rate as determined by the Inland Revenue Board. However, staff must ensure that he submits his annual income tax assessment to the Inland Revenue Board.


Responsibilities of Staff with Regard to Income Tax

  1. Tax matters are personal responsibility of the staff
  2. Each staff must submit the Income Tax Assessment form at the latest by 30th April (for no other source of income) or 30th June (if the staff received income from other business) using online or hardcopy tax assessment submission method.  For this purpose, staff must keep all relevant documents as proof for a minimum period of seven (7) years. 
  3. Prior to leaving Malaysia, international staff who have ended their contract with the University must declare their tax at the Inland Revenue Board.