LABOUR COST IN MALAYSIA 2016 Final Report - National Labour Cost Survey 2016 (F | Page 32

for the employees. This benefit can be provided in the form of cash reimbursement,
payment for insurance coverage or fixed payment in cash to the employees (which is
not covered under ‘cash allowance’).
e. Training
Net amount incurred by the employer for the training of employees, after deducting
the cost recovered from training incentive schemes such as HRDF, government
agencies, statutory boards and/or private sponsors. It includes course fees, rental of
premises/facilities for training purposes, monetary allowances given to trainees, cost
of training materials incurred in providing structured on-the-job training as well as
airfare and accommodation for trainees sent for overseas courses. It excludes wages
of in-house personnel involved in training and capital investment on training facilities.
It also excludes contributions made to HRDF.
f. Sports, recreation and child care
Cash and non-cash benefits and facilities (which are not covered under ‘cash
allowance’) that include gymnasium and club memberships, child care facilities,
children’s education fees, vacations, annual dinners, social gatherings, etc.
g. Uniform, protective clothing and security equipment
Cost borne by the employer for the purpose of standardization in employees’ attire,
or to provide employees with the necessary health and safety protection while
performing their work.
h. Others
For example, loan subsidy, retirement benefits, etc.
3. SPPA
SPPA (Skim Pampasan Pekerja Asing) or Foreign Workers’ Compensation Scheme is an
insurance protection scheme made compulsory for all employers to insure their foreign
workers. The annual premium is fixed at the rate of RM72, excluding service fee, GST and
stamp duty.
4. Severance and other termination payment
Cash compensation paid to qualified employees whose employment contracts have been
severed or terminated.
5. Recruitment cost
Includes expenditure on job advertisements, fees to recruitment agencies, relocation,
health screening and career fair.
Non-wage cost also includes the levy for foreign workers. However, this is not included in the
estimation of total labour cost in the following section as the levy is currently not paid by the
employers.
National Labour Cost Survey 2016: Final Report
29