Malaysian business licence·Federal
Salary Deduction Permit (PGP)
Issued by Jabatan Tenaga Kerja Semenanjung MalaysiaEmployment Act 1955
Overview
The Salary Deduction Permit (PGP) ensures that employers only deduct salaries for purposes allowed under the Employment Act 1955, preventing excessive deductions that burden employees. This permit is necessary for employers who wish to make salary deductions for specific benefits to employees.
Key details
Governing Act
Employment Act 1955
Agency fees
No fee & no validity period until revoked by the Director General.
Validity
Annual renewal typical
Issuing authority
Jabatan Tenaga Kerja Semenanjung Malaysia
Fees shown are government / local-authority fees payable to the issuing agency. Emerhub charges a separate service fee for handling the application end-to-end.
Eligible applicants
Businesses, companies, limited liability partnerships & professional bodies
Application requirements
- Written application for new/renewal
- Deductions must be requested in writing by the employee
- Signed consent letter from the employee must be kept and shown upon request
- Total deductions cannot exceed 50% of monthly income or 75% for housing loans
- Employers must ensure payments to third parties are made as per deductions
- Repayment periods for advances cannot exceed 18 months