Malaysia

MTUC seeks 6-month loan moratorium extension for B40, M40

Unions’ group lauds establishment of National Employment Council to provide the people with job opportunities

Updated 5 years ago · Published on 08 Nov 2020 10:39PM

MTUC seeks 6-month loan moratorium extension for B40, M40
MTUC urges the government to introduce the Emergency Employment Regulation, so as to guarantee workers’ job security. – Pixabay pic, November 8, 2020

KUALA LUMPUR – The Malaysian Trades Union Congress (MTUC) has called on the government to consider its proposals in relation to Budget 2021, among them, the automatic implementation of a loan moratorium for borrowers from the B40 and M40 groups.

In a statement today, secretary-general Kamarul Baharin Mansor proposed a six-month extension of the moratorium for the two income categories.

He said MTUC also calls on the government to fund the 2% difference in contribution rate for Employees Provident Fund (EPF) members for a period of 12 months.

When tabling Budget 2021 on Friday, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz announced an initiative to reduce the EPF employee contribution rate from 11% to 9% next year, to allow workers to increase their take-home pay.

Kamarul Baharin said the EPF Account 1 withdrawal facility, also announced in the Budget, should be extended automatically to contributors who opt for i-Lestari.

He said MTUC proposes the maintenance of the Employment Insurance Scheme allowance rate at 80% from the first to third month.

The unions’ group lauded the establishment of the National Employment Council as a proactive step by the government to provide job opportunities to the people, and requested that it be included in the council.

The government should introduce the Emergency Employment Regulation to guarantee present employment, and that workers will continue to receive salaries and benefits, added Kamarul Baharin.

This proposal was submitted to the Human Resources Ministry on April 14. – Bernama, November 8, 2020

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