Release Note - version 1.15

Release Date:  9th January 2025 (Thursday)

Version: 1.15

Introduction

This document outlines the new enhancements in Financio Payroll for release version 1.15

Compliance Updates (Singapore)

Compliance #1 – CPF Ordinary Wage Ceiling

• Effective from 1 January 2025, the CPF ordinary wage ceiling will be increased from $6,800 to $7,400.

Compliance #2 – CPF Contribution Rate for Ages 55 to 65

• Starting from January 1, 2025, the CPF contribution rates for employees aged between 55 and 65 will be increased to enhance their retirement savings. These changes will apply to wages earned from January 1, 2025, onwards.

Compliance Updates (Malaysia)

Tax calculations have been updated to comply with the new changes announced in the Malaysian Budget in October, effective from 1 January 2025. The changes are as follows:

Compliance #3 – Disabled Individual Relief

• The tax relief for disabled individuals will be increased to RM7,000.
• The tax relief for individuals with a disabled spouse will be increased to RM6,000.
• The tax relief for individuals with unmarried disabled children will be increased to RM8,000.

Compliance #4 – Medical Expenses Relief

• The tax relief for medical treatment for taxpayers, spouses, and children will be expanded to cover expenses for the purchase of self-testing medical devices and fees for disease detection examinations conducted at clinics or hospitals, limited to RM1,000 from the year of assessment 2025.
• The tax relief for assessment and diagnosis, early intervention programs, and continuous rehabilitation treatment for children aged below 18 will be increased to RM6,000.

Compliance #5 – Education and Medical Insurance Relief

• The education and medical insurance relief will be increased to RM4,000.