Hi Guys, want to ask your opinion. I just received a job offer. The initial offer is without epf socso (1 year contract).

I asked to have an epf socso also, they agree but will lower a bit the salary. After I calculate, I will loss around rm300 if I take the offer with epf + socso.

Is there any good reason that can beat the extra rm300, if I take the offer with epf socso ?



This post has been edited by Xitox: Jul 27 2022, 07:08 PM

Pretty sure job with no EPF and Sosco is illegal in Malaysia

It's illegal.

Simple.

not illegal if they dont hire you as an employee

treat you as independent contractor for a "project". The "project" amount to be paid in 12 instalments/terms

Contract without EPF, Socso, EIS - not completely illegal. It depends on the terms and conditions stated in the contract. It is like freelancing. You can have your choice of forming a sole proprietor to lower your tax or just operate like an individual. For the party that handle your contract, they reduce their payroll workload because they don't have to process your PCB and statutory contribution. The pro - you get 100% of your wage and file your tax return as business income. The con - the rest of the forum members will tell you. However, if your wage is less than 10,000 a month, then it is no point to operate as business or freelance. Go through the EPF, Socso, EIS. At least, after one year, if your contract is not renewed, you can apply for the EIS benefit.

This post has been edited by ongss: Jul 27 2022, 07:46 PM

Even if they don't pay EPF, you can always self contribute. As for SOCSO, the important thing is you need to have a job that has a few years which contribute it so you are eligible for benefits in the future. So just take the higher offer and has the discipline to self contribute the EPF amount. Unless your 1 year EPF > 60K because the max for self contribution is limited to 60K.

This post has been edited by vhs: Jul 27 2022, 07:49 PM

if the salary+epf is high enough, its ok.

What do you mean by "file your tax return as business income"?


Hmm not that high if compared to my current salary. Based on my calculation, if I take offer with epf my salary increase by 10%, meanwhile offer without epf increase by 18%

Its illegal. Mind to share company name likely its scam


Long time ago companies use this way to offer higher salary with no epf but some issues arises and no longer in practise

then is not worth

employer contribution should be 12-13%
your effective increment is only 5%

If your wage is not subjected to EPF, Socso and EIS, legally you are not an employee and hence there will not be any PCB deduction.

The party that signs the contract with you will not give EA form too. Hence, if your income is more than 3k per month, you need to declare your income and fill in your wage as business income.

To leave a permanent job for a contract with merely 10% increment, frankly, this may not be a good idea. Wait for better opportunities.

oh my bad, actually I already deduct the employer contribution 12-13%

Oh I see, got some reasons why I interested to leave. Current job notice period is 3 months, and I did not grow much in these 3-4 months. Quite hard for me to find a job when the notice period is 3 months.

Edit: This new company is willing to wait for me, also I have work before with them.

Depends on your skillset. There are companies which are okay to do a buy-out i.e. they will compensate your current employer in lieu of notice if they need your service urgently.

Like what others pointed out. It's not really illegal per say in Malaysia if you are a freelancer / contractor etc (no epf/socso). Some people are also tied to certain recruitment agencies as freelancers too.

But is there a risk of no further extension after your contract (1 year)?

What is the ideal increment (%)?

Whenever you change a job, look for minimum 15% to 20% increment. Whenever you leave a perm for contractor, take a risk premium of additional 15%. So, if I were you, without 30% increment for this one year contract, I will wait for next opportunity. Of course, if you are jobless, I would advise you to pick up.

Staying in a company that is slow in growth - does not necessarily bad idea. Sometimes, it is an opportunity for you to observe and learn other perspective you have not thought of.

Ah I see, thank you so much for your insight

Only take it if desperate, else don't.