30 Jun 2020 12:00:00 AM

Flexible Work Arrangements Tax Exemption

The FWAs Incentives were announced by the Prime Minister under the Pelan Jana Semula Ekonomi Negara (PENJANA).
A work-life friendly workplace can be established by introducing and implementing Flexible Work Arrangements (FWAs) that allow employees to vary their work arrangements to suit their individual needs.
The FWAs Incentives were announced by the Prime Minister under the Pelan Jana Semula Ekonomi Negara (PENJANA), also known as the National Economic Recovery Plan as an approach to cushion Malaysia’s economy recovery and to propel local businesses.

The PENJANA scheme focuses on 3 key thrusts: ‘Empower People’, ‘Propel Businesses’ and ‘Stimulate the Economy’.

This initiative - the Flexible Work Arrangements Tax Exemption - falls under the ‘Empower People’ umbrella, is intended to encourage the effective implementation of FWAs, which can support both employers and employees.

To embrace the new normal, the Government will support employers with the following:

• Further tax deduction for employers for implementing FWAs or undertake enhancement of their existing FWAs  (effective 1st July 2020).

More information will be made available soon.


Why Implement Flexible Work Arrangements

Promote better work-life integration in balancing professional and personal commitments.
Provide support to working parents in an organisation.
Motivates employees to work to their fullest capability through flexible work arrangements.