Please enable JavaScript.
Coggle requires JavaScript to display documents.
Gratuity S13(1)(a), Compensation for Loss of Employment - Coggle Diagram
Gratuity S13(1)(a)
worked up to full term of employment
full exemption
ill health
retire at =>55 years old, AND
work for the same company / group for 10 continuous years
retire at 50 - 54 years old (per employment contract / collective contract), AND
work for the same company / group for 10 continuous years
death gratuity
partial exemption
(if cannot meet the condition for full exemption)
gratuity will be given an exemption of RM1000 for every completed year of service for the same employer
ie gratuity = 1000 x number of completed years
period of employment is calculated from 1st day of newly extended contract (employment contract extended after retirement)
gratuity credited to EPF accounts is taxable as income upon payment / crediting into EPF account
exemption is available for director of controlled company
Compensation for Loss of Employment
full exemption
premature of employment contract ie VSS
unfair dismissal
restrictive covenant (ie restricted by the co to work in Msia after termination)
termination due to ill health
no exemption
payments received for change in retirement age
directors of controlled companies (even satisfy condition for full / partial exemption)
partial exemption (does not meet the condition for full exemption)
exemption of RM10000 per completed year of service
not eligible for exemption if re-employed by the same employer / same group