Staff must consent to salary deductions for PTPTN loans under current law, says HR Minister

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.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Did you find this article insightful?


Next In Nation

Sarawak records 252 new Covid-19 cases, one death
Covid-19: New cases fall below 2,000 for third straight day, eight fatalities bring death toll to 1,177
Covid-19: Cases up by 1,529, bringing total to 314,989 (updated daily)
EMCO in four areas in Maran ends ahead of schedule
Cops investigating woman's murder in Taman Bangi
Cops arrest suspect for allegedly stabbing 78-year-old man in Johor
PM: Ungku Aziz's achievements should encourage Malaysians to overcome issue of poverty
Proposal to be submitted to NSC to allow 4,000 fans at football stadiums, says Reezal
Ministry investigating claims of black patches of water in Sg Kim Kim, Johor
Seventy-nine summonses issued in police ops against those who modified motor exhausts

Stories You'll Enjoy