On 5th June 2020, the Malaysian Government announced the Short-Term Economic Recovery Plan(STERP) valued at RM35 billion. Among the 40 initiatives implemented, one of it includes encouraging work-from-home arrangements by providing support to both employers and employees which begins in June 2020. While there are certain companies which already provide employees with the option to work remotely before the pandemic, there a lot of reasons why it’s good for many companies to still allow employees to work from home even after the MCO. Here are some of the incentives for employers and employees that implement work from home policy.
1. Tax Deduction for Employers
To encourage work from home arrangements, employers that implement or undertake enhancement of flexible work arrangements will enjoy a further tax deduction.
2. Income tax exemption
Employees that receive a mobile device such as phone, notebook & tablet from their employer will enjoy income tax exemption of up to RM5,000.
3. Special individual income tax relief
Any purchase of mobile devices such as handphone, notebook & tablet will be eligible for special individual income tax relief of up to RM2,500.
4. Special coverage from SOCSO
Any employees involved in accidents while working at home will be covered by SOCSO under the Employment Injury Scheme.
5. RM800 eVouchers for working parents
Each household will receive eVouchers of RM800 for mobile childcare services.
6. Income tax relief for working parents
An increase in income tax relief from RM2,000 to RM3,000 for Year of Assessment will be eligible for parents on childcare services expenses.
7. Improves Talent Attraction & Retention
Home-based-work will provide employers with the advantage of hiring from a wider talent pool, which includes skilled experience job seekers that require flexible work arrangements for personal circumstances such as family care. It is also beneficial to employers in retaining experienced and valued employees within the company who are not able to work in office due to changes in personal circumstances.
8. Enhance Work-Life Balance
Adopting work from home policy will increase flexibility in work arrangements and hours, providing employees with the opportunity to achieve a greater balance between work and personal life.
9. Facilitate Participation in the Workplace
Home-based work can provide job seekers and employees that are unable to work in an office the chance to join the workforce and contribute to the company and economy. Most importantly, it provides them to earn a monthly salary to support household income.
10. Improves Business Continuity
Employers with home-based employees are less likely to be affected by situations that could affect employees from travelling out for work such as pandemic outbreaks.
11. Enhance Customer Service
A flexible work hour for home-based work improves customer service as working hours can be extended and timely support can be offered.
12. Increase Productivity
Employers will have better flexibility to list home-based employees based on the demands of the business. This will help to improve manpower and resources deployment which will increase productivity for the company.
13. Reduce cost
Employers can help to reduce staff turnover-related costs and other fixed costs such as office rental and workstation set-up cost through home-based work.
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You Jing is a content writer who writes career and lifestyle contents to inspire job seekers and employers alike on their journey to work-life balance, empowerment and transformation in their career path.
Reach me at youjing@jobstore.com