As mentioned in the title, please enlighten me. Thanks.

The company I am currently with is unwilling to confirm me, and hence they offered me a 1 month contract job.

Most of the things is same, just no EPF and SOCSO.

I has a feeling of either one of us will sack each other anytime.

In general, all payments which are meant to be salary or wage are accountable in your monthly contribution amount calculation. These include:

*
Salary/Wage;
* Payment to replace service termination notice;
* Payment for unutilised leaves;
* Bonuses;
* Allowances;
* Commision;
* Accrued salary/wage;
* Salary/wage for maternity leaves;
* Salary/wage for study leaves;
* Salary/wage for half-pay leaves;
* Directors salary/wage; and
* Other payments stipulated under contracts of services/employment or vice versa.

sos - http://www.kwsp.gov.my/index.php?ch=p2memb...&ac=274&lang=en

shud have EPF for contract worker..socso also have for me..bcoz i am contract worker..

however some co try cheat on it...

u should ask EPF to confirm.

unless u r being paid as a contractor/vendor... is that the case or are you on their payroll?

Just appreciate if anyone can share if they took/encountered any EPFless and SOCSOless contract offer.

Thanks for your golden advice. It is very helpful of you and you pwned every one else here.

I receive payslip monthly. But now they decided to end my probation, and start with a service of contract thingy.

No, I am not a 3rd party contractor or vendor, I sit in their office and I punch in every morning.

Thanks rognales for the accurate reference.

This post has been edited by rexis: Apr 8 2009, 10:39 AM

i think they are treating u as a freelancer and u are being paid not as employee but as a vendor... that why no epf and sosco

I just wan u to get the fact straight rather than asking for opinion.... u can call up EPF or send them an email...i know ppl like to speak based on opinion coz its easy... but only facts that matters. EPF can clear all ur doubt fast!

Does a freelancer has job title?

Thanks for your opinion. I just like to find out if this is a common practice.

Its sort of a new thing to me that a contractor do not hv EPF. So I am just trying to find out if they are making me a space goat or I am just not well informed about Malaysia Law

Called EPF anyway.

last time my ex company also got contractor, he is work in the company, but end month he get a cheque from finance straght. he not in our payroll.

maybe ur case is something *not so right* done by the company HR, unless the company HR totally not involve in this process, then i suppose u can be classify as a non-staff

there are many kinds of contract workers. I was in one which didn't give me any EPF, SOCSO, etc. 0 benefit.

And some don even allow you to resign (but they can sack u immediately). Some pay u for the number of days u work - daily rate.

And there are also some which have the exact benefits with the permanent (except for stuff like dental and optical).

So it really depends on the company.

But yeah, if you are asking if it is legal to have zero SOCSO and EPF for contract - then yes, there are such contracts.

I believe the labor law states that companies MUST give EPF contributions to their employee, contract or otherwise.

A contractor doesn't always mean contract employee. It can be contract service provider or supplier as well.

I can contract someone to come mop the floor and wash the toilet everyday. That doesn't make that person my 'employee'. Its makes them a service provider like DHL or the auditors or my regular taxi driver. Contractors can technically be self-employed.

This is stated in the KWSP website:
* Other payments stipulated under contracts of services/employment or vice versa.

And the officer I talked to in KWSP say that any contract that against Malaysia Law is not legal, even if you signed it and it say no EPF.

What does this mean?

Well, I can tell you in my first contract job (2000-2001) I did not get EPF - rather I got EPF factored into my package.

However, in my second contract job (2002-2006) I got EPF.

As for your question, any contract that breaks any law is automatically invalid....that's all it means.

In your situation, the floor mopper is NOT your employee. He/she is basically task based. In other words, the contractor is not tied to your company policies or resources nor report to a superior in that company, and is NOT a member of the organization. However, if you are employed by the company, even if it means it is a contracted employment, you are entitled to all benefits accorded to you by labor law (except things like gazetted holidays, termination or job security.

---

Added on April 8, 2009, 2:01 pmIf you have EPF "packaged" into your salary, that means the employer did its part of fulfilling the EPF contribution (that 12%). It will then be your choice to put that contribution into your EPF account or not.

This post has been edited by spanker: Apr 8 2009, 02:01 PM

on my 1st job as a contract worker, i don't get any EPF or SOCSO and only after 1 year they gave me.

But now on my 2nd job as a contract worker, all my benefits are the same as permenant staff but only tied down by the contract.

heard it is illegal not to contribute to EPF and SOCSO.

So, in your opinion, anyone whose work:

(a) is not task based (what does this mean? At the end of the day, work is simply a series of tasks, no?)
(b) is tied to company policies or resources
© reports to a superior in the company
(d) is somehow a 'member' of the organisation (what does this mean anyway?)

- is defined as an employee?

what I mean from your definition of "contractor" is that i just do what I am hired to do. If your company has the office hours of 8 a.m. - 5 p.m. I am not obliged to follow that, as long is I cleaned your toilet.

Basically, when you are employed by the organization, means you are a member of the organization. If your contract is a business contract (e.g. freelancing situation), and not and employment contract, that means you are not entitled to those benefits.

Perhaps this is what I should have said in the first place instead of complicating the situation

Not quite - the employer compensated me for not getting EPF by adding to my basic salary. The only thing is....I got taxed for that . Doesn't matter what the intention is, lawfully I was only getting a basic salary.

This post has been edited by cwtien: Apr 8 2009, 03:07 PM