1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded education professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

KL EPF..... or gratuity?

Discussion in 'Teaching abroad' started by claytie, Jan 17, 2020.

  1. claytie

    claytie New commenter

    Is there a trend for international schools in KL to not pay into EPF, but offer a gratuity at the end of the contract instead?
  2. taiyah

    taiyah Occasional commenter

    There was a time when EPF was one of the first bullet points when advertising for positions. These days, there are schools who don't offer it or not signed with the scheme.

    Unfortunately, it's pretty easy to figure out why some schools have replaced it with gratuity instead.
    claytie likes this.
  3. Jason_Bourne_

    Jason_Bourne_ Established commenter

    How many schools do you know of who have replaced the EPF scheme with an end of service gratuity?
  4. taiyah

    taiyah Occasional commenter

    3 - not signed on the EPF scheme... Two of which are as per negotiated by individuals as an end of and or re-sign contract bonus/es instead.

    Surprised that I actually know about Malaysia? Unlike your so called "advise" in the Doha thread that may cost a person a job?

    Stay on task Jason_Bourne_. Only comment when you actually have 1st hand experiences.
  5. the hippo

    the hippo Lead commenter Community helper

    Only comment on first-hand experiences, taiyah? Then I would never write on this TES forum again! I cannot agree, taiyah. The important thing is to add the caveat "...or so I have heard".
  6. Jason_Bourne_

    Jason_Bourne_ Established commenter

    No - I'm not surprised. Read my post again. I simply asked how many schools you knew who have replaced the EPF scheme with an end of service gratuity. Don't be so sensitive!

    Regarding the other post - how do you know that I don't have 1st hand experience?
  7. HeroForTheDay

    HeroForTheDay New commenter

    A number of schools dont offer the EPF and some that do only offer the minimum requirement of Rm5 a month for foreigners. So depending on the offer of the school. If the school follows EPF then they should fund 11-13% contributions to your 11%...that can quite quickly build up over a 2 year deal. However if they dont offer it gratuity may be better
  8. claytie

    claytie New commenter

    Is the gratuity also taxed?
  9. taiyah

    taiyah Occasional commenter

    Yes. As it will fall as your salary and gets finanlised at the end of your tenure. You will need to sort out and pay all of your taxes and other owings (bank loans) before a school signs you off. No eay around it.

    That's if your HR is on the ball.
  10. claytie

    claytie New commenter

    Interesting. I think the EPF is not taxed.
  11. gulfgolf

    gulfgolf Established commenter

    A gratuity is a sure thing. EPF is a gamble that might pay big or go bust.
    claytie likes this.
  12. taiyah

    taiyah Occasional commenter

    No it is not. Well it wasn't when I took my whole chunk out. That's why it's such as an amazing top up.

    There are schools that make you pay into it as a part of their EPF deal (like the UK). However, the school I was at, all the money that went into my EPF were from my employer.

Share This Page