Tax deductions available for businesses hiring senior workers
The Malaysian government has highlighted its efforts to support senior workers in employment in the wake of recent calls to raise the mandatory retirement age in the country.
Finance Minister II Datuk Seri Amir Hamzah Azizan said in Parliament this week that there are tax cuts for employers to encourage the employment of older workers, Bernama reported.
The tax cuts are part of the amended Income Tax Rules introduced in 2019, where employers get the incentive of tax deductions on the remuneration paid for senior citizens, or those above 60 years of age, who are employed in a full-time capacity, according to EY Malaysia.
Bernama reported that the tax cuts are extended until the year of assessment 2025, as the government seeks to ensure that older people have a stable source of income.
Other efforts to support older taxpayers include other income tax reliefs, according to Amir Hamzah.
"Senior citizen taxpayers can also claim a wide range of individual income tax reliefs covering all aspects of life, including personal and dependent care, medical expenses and treatment, retirement, insurance, and lifestyle such as sports activities," the minister said as quoted by the news outlet.
The remarks come after Prime Minister Datuk Seri Anwar Ibrahim announced in late July that the government would review the possibility of raising Malaysia's mandatory retirement age, Malay Mail reported.
The current mandatory retirement age is 60, but a debate opened earlier this year calling for its hike amid an ageing Malaysian society.
The Malaysian Employers Federation previously welcomed the move but noted that a challenge would be ensuring that younger people would remain employed and promoted.
The Malaysian Youth Council, on the other hand, said raising the retirement age would reduce job opportunities for younger people.
