Scribd
Upload
42 views2 pages

Mapa Circular No. 5

MAPA Circular No. 5/2025 informs estate and factory managers about the classification of ex-gratia and arrears payments as 'wages' under the Employees’ Social Security Act 1969, which requires appropriate SOCSO and EIS contributions. The circular also clarifies that a previous statement regarding EIS contributions for ex-gratia payments is no longer relevant. Managers are encouraged to contact the office for further clarification if needed.

Uploaded by

Mazniah Yunus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
42 views2 pages

Mapa Circular No. 5

MAPA Circular No. 5/2025 informs estate and factory managers about the classification of ex-gratia and arrears payments as 'wages' under the Employees’ Social Security Act 1969, which requires appropriate SOCSO and EIS contributions. The circular also clarifies that a previous statement regarding EIS contributions for ex-gratia payments is no longer relevant. Managers are encouraged to contact the office for further clarification if needed.

Uploaded by

Mazniah Yunus
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

MAPA CIRCULAR NO.

5/2025

THE MALAYAN AGRICULTURAL PRODUCERS ASSOCIATION

P.O. Box 07015,


GPO Shah Alam,
40700 Selangor

7 February 2025

To: Managers of Estates/Palm Oil Mills/Factories in Membership

CONSENT AWARD NO: 36 OF 2025

MAPA/NUPW COLLECTIVE AGREEMENTS 2024 -


EX-GRATIA PAYMENT IN LIEU OF BACKDATING & ARREARS OF WAGES

SOCIAL SECURITY ORGANIZATION (SOCSO) AND


EMPLOYMENT INSURANCE SYSTEM (EIS) CONTRIBUTIONS
-------------------------------------------------------------------------------------------

Further to MAPA Circular No.1/2025 dated 6 January 2025, Managers are kindly
be informed that we have just received clarification and confirmation from Dato' Sri Dr.
Mohammed Azman bin Aziz Mohammed, Group Chief Executive Officer of the Social
Security Organization (PERKESO), regarding the position of ex-gratia and arrears
payments are considered as “wages”.

SOCSO Contributions

2. Please take note that ex-gratia payment is considered as “wages” as provided for
under the Employees’ Social Security Act 1969, if it is paid as salary adjustments or
retrospective salary alignment (back-dated) and paid in a lump sum. Therefore, this
payment is subject to appropriate contribution payments. Similarly, arrears payment is
also considered wages and subject to appropriate contribution payments.

EIS Contributions

3. Please also take note that since the definitions of wages under SOCSO Act 1969
and Employment Insurance System Act 2017 are almost identical and therefore,
Managers are advised to ensure that appropriate contribution payments are made not
only towards SOCSO but also towards EIS.

Unit K03-08-08, Tower 3, UOA Business Park, 1,


Jalan Pengaturcara U1/51A, 40150 Shah Alam, Selangor Darul Ehsan.
Tel: 03-50313995 / 996 / 997 Fax: 03-50313998 Email: mapahq@mapa.net.my / mapahq@gmail.com
www.mapa.net.my
1
Amendment to MAPA Circular No. 1/2025

4. Kindly note that the first sentence of Paragraph 119 at page 17 of MAPA Circular
No. 1/2025, is no longer relevant and should be deleted from your records accordingly.

119. Please take note that the ex-gratia payment in lieu of backdating as provided
for under the newly concluded four (4) Agreements would not attract EIS
contributions. However, arrears of wages payable from 1 January 2024 would
attract EIS contributions.

5. Should Managers need further clarification, please do not hesitate to contact this
office or our regional offices.

(HJ. MOHAMAD BIN AUDONG)


Executive Director

MA/mh

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy