Update

Minimum Wage of RM1,700 Effective August 1,2025

Mandatory minimum monthly wage of RM1,700 starting 1 August 2025, applicable to all employers.

Employers who violate this policy face fines up to RM10,000 per employee, with repeat offenders potentially subject to imprisonment.

SARA One Off Living Allowance

The government has announced a one-off RM100 cash aid for all adult citizens under the Sumbangan Asas Rahmah (SARA) programme. This initiative is part of the government’s effort to help ease the rising cost of living and serves as a token of appreciation in conjunction with the 2025 National Day celebrations.

The eligibility criteria for this one-off assistance are straightforward and universal. You are eligible if you are a Malaysian citizen, aged 18 and above, and hold a valid MyKad.

The RM100 aid will be credited directly to your MyKad, which will function as a cashless payment tool. The funds will be available for use from 31 August 2025 until 31 December 2025.

What Can You Buy With The SARA Aid?

The government has specified that the SARA credit is for purchasing essential household goods across 14 approved categories. These categories include a wide range of items such as rice, bread, noodles, eggs, cooking oil, and flour. You can also purchase beverages, canned goods, personal hygiene products like soap and toothpaste, and over-the-counter medicines. Following public feedback, the list was expanded to include household cleaning supplies, such as laundry detergent and dishwashing liquid, and school supplies.

Responsibility of Employer

FORM CP22  

-  Notification Form By Employer For New Employee

-Starting 1 September 2024, employers are required to submit notification forms for new employees through e-CP22. The manual submission of Form CP22 is no longer allowed.

-The service through the e-CP22 application has been made available online through the MyTax portal for employers to submit the CP22 Form. The User Manual for e-CP22 can be accessed through MyTax > User Guide. 

-Failure to comply with the above provision under subsection 83(2) of ITA 1967 without any reasonable excuse, upon conviction of an offence, will be liable to a fine of not less than RM200 and not more than RM20,000 or to imprisonment for a term not exceeding 6 months or to both.

Form CP22A / CP22B 

-Notifications of Termination of Service

-is mandatory to be submitted online through MyTax portal using e-SPC application. The User Manual for e-SPC can be accessed through MyTax > User Guide. 

The table below is a general guide for employers to determine whether forms CP22A / CP22B notification is required to be submitted. Based on the schedule, employers are required to submit Form CP22A / CP22B through e-SPC for cases that are subject to tax clearance letter (SPC) requirements only.