Retirement benefit in Malaysia: understanding the legal framework and its challenges to the migrant workers

Mohamad Amin, Noor Shuhadawati and Ali Mohamed, Ashgar Ali and Torla, Areej (2021) Retirement benefit in Malaysia: understanding the legal framework and its challenges to the migrant workers. IIUM Law Journal, 29 (2). pp. 199-220. ISSN 0128-2530 E-ISSN 2289-7852

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Abstract

The retirement benefits scheme is one of the social security protections accorded to employees around the world. In Malaysia, the retirement benefits scheme is in the form of the contribution made by both employer and employee at a specified rate based on the employee’s monthly wages and such contribution will be credited into the employee’s fund. An employee is allowed to withdraw money from the fund when he or she reaches retirement age. The doctrinal study found that the retirement benefits scheme in Malaysia differs greatly between the local employees and migrant workers. Although migrant workers are allowed to contribute to the retirement benefits scheme known as Employees Provident Fund, their contribution is voluntary, and not done compulsorily. The contribution of the employer is capped at only RM5 per month, which is very low. It is exacerbated by the fact that the contribution in the fund is not transferable as the Employees Provident Fund Act does not provide any provision to transfer the retirement benefit to another scheme in another country. It is hoped that these challenges faced by migrant workers will be given due consideration by the government to allow the migrant workers to have adequate social security protection by reforming the current retirement benefit statute or introducing a new retirement benefit statute that only protects the migrant workers.

Item Type:	Article (Journal)
Uncontrolled Keywords:	Retirement benefit scheme, employee, migrant workers, challenges, law.
Subjects:	K Law > K Law (General) K Law > K1701 Labor Law
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Ahmad Ibrahim Kulliyyah of Laws Ahmad Ibrahim Kulliyyah of Laws > Department of Civil Law
Depositing User:	Dr Noor Shuhadawati Mohamad Amin
Date Deposited:	28 Feb 2022 08:21
Last Modified:	17 Mar 2022 12:41
URI:	http://irep.iium.edu.my/id/eprint/96940

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