KUALA LUMPUR – The mandatory Scheduled Salary Deductions of the National Higher Education Fund Corporation (PTPTN) will commence this January.
In addition, the government will also not waive the administration fee.
Its Chairman Wan Saiful Wan Jan said, although they have received a lot of proposals to abolish the administration fee, the government has yet to decide on amending the policy on the fee.
“I think we’ve heard about the opinion several times. It is among the things that we can consider.
“However, we have yet to make any decision to amend policy on the matter,” he said in a press conference today.
Prior to this, Wan Saiful said that PTPTN is currently working with six agencies namely, the Employers Provident Fund (EPF), Inland Revenue Board of Malaysia (IRB), Retirement Fund Inc (KWAP), Accountant-General’s Department, Armed Forces Payroll Directorate and Public Service Department (JPA) to obtain information of the income and particulars of the borrowers and their employers.
“The information obtained by PTPTN will be used for the instruction of scheduled salary deductions in accordance to its respective percentage. It will then become the responsibilities of the employers to do the scheduled salary deductions of their employees for the PTPTN repayment.
“Borrowers who are not under employment are required to update their income status through the PTPTN website to enable them to enjoy the repayment schemes facilities based on their income,” he said.
He also said that the employers are encouraged to give incentives to assist their employees to pay their studies loans.
Employers would also be given tax exemption for the incentives given to their employees to repay their PTPTN loans.
“I am pleased to announced that employers who help to pay their employees’ PTPTN loan would be given tax exemption,” he said.
There are currently a total of 225,000 borrowers identified to be earning less than RM2,000 and they will not be require to pay their loans. – MalaysiaGazette