There can be no automatic deduction of employees' salaries to repay loans under the National Higher Education Fund Corporation (PTPTN) says M. Kula Segaran (pic).
The Human Resources Minister said employers could only make direct deductions if an amendment was made to the PTPTN Act.
“As at now there was no law to allow such a deduction without prior approval from the employee through the scheduled salary deduction (PGB),” said Kula to newsmen after opening the "7th Employment Law Forum 2018" here yesterday.
Kula however said he would not comment much on the subject at it comes under the jurisdiction of the Education Ministry.
PTPTN chairman Saiful Wan Jan said on Wednesday (Dec 5) that borrowers earning more than RM2,000 a month would no longer be able to avoid payment once the PGB kicks off next month.
He said PTPTN would issue a directive to employers to carry out the deductions according to the percentage set in the PGB scheme.
However Malaysian Trade Union Congress (MTUC) president Datuk Abdul Halim Mansor said PTPTN could not make any salary deductions without the borrower’s consent according to the Employment Act 1955.
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