2.1 How much Graduate Skills Development Allowance can an employer claim under this scheme?

Employer may claim up to twelve (12) months Graduate Skills Development Allowance which is equivalent to the graduate’s basic salary paid by the employer.

2.2 What is basic salary?

Based on Employment Act 1955, Section (2), “Wages” means the basic wages and all other cash payments payable to an employee for work done under a contract of service, but it does not include the value of accommodation, utilities, food, the employer’s contributions to EPF/SOCSO/EIS, travel allowances or reimbursements, retirement or retrenchment benefits, bonuses, commissions, gifts, or overtime payments.

Scenario:

Ms. A is employed in Kuala Lumpur with the following monthly salary breakdown:

• Basic Salary: RM3,000

• Transport Allowance: RM300

• Meal Allowance: RM200

• Overtime Pay: RM150

In this case, only the basic salary of RM3,000 per month is claimable. The additional allowance of RM650 is not eligible for reimbursement.

2.3 What is the employer’s maximum eligibility to claim under SGM scheme?

Employers may claim the full amount of the allowance, subject to a maximum of 50% of their levy balance as of 1 January in the year the application is submitted (for their eligibility amount). For further information, please refer to the scenarios below: -

2.4 What is the duration of the graduate skills development programme?

The programme must be conducted and completed for 12 months to be claimable under this scheme. Any programme that does not fulfil full 12 months duration will not be eligible to claim under SGM.

2.5 Who is eligible to for SGM?

All Malaysian graduates employed by registered employers that:

i. have completed all higher academic requirements which may include Sijil Kemahiran Malaysia (SKM) Level 4 and above.

ii. are seeking their full-time job as permanent or fixed-term contract for at least 12 months period.

iii. has no prior full-time work experience in the formal sector.

2.6 What is formal sector?

Formal sector refers to the part of the economy that is regulated, officially registered, and recognized by the government. Jobs in this sector follow established labour laws, provide contracts, pay taxes, and usually include protections like EPF and SOCSO.

2.7 What are the other allowances claimable under SGM?

No other allowances are claimable under SGM. 

2.8 Can an employer apply for financial assistance if the graduate leaves the job before completing the 12-month programme?

No, the financial assistance under SGM is only claimable if the graduate completes the full 12-month graduate skills development programme. If the graduate leaves before completing the 12 months, the employer is not eligible for financial assistance under this scheme.

2.9 Under SGM, is any level of higher education claimable, particularly for graduates with no prior working experience?

Yes, the SGM is claimable for both undergraduates and postgraduates, if they are seeking for a full-time employment with no prior full-time work experience in the formal sector, after completing their most recent graduate-level course.

Scenario 1: Undergraduate with No Work Experience

After completing her degree in environmental science, Aisha began actively applying for full-time roles as sustainability consultant. Although she had parttime jobs during her studies, she has never held a full-time position, this is her first time entering the job market after completing her graduate studies.

Scenario 2: PhD Graduate with Previous Work Experience

Kelvin worked as a mechanical engineer for five years before deciding to pursue a PhD in Biomedical Engineering. After graduating, he is now seeking full-time employment in a research-intensive role within the healthcare technology sector.

Scenario 3: Already Employed, Switches Career with the Same Employer

Alice has been working full-time as a clerk at her current company. During her employment, she completed a postgraduate diploma in engineering. Upon completing the course, her employer approved an internal transfer, and she is now working full-time as a junior engineer with the same employer.

Scenario 4: Career Break, Returning to Workforce After Further Studies

Aishah completed her bachelor’s degree 7 years ago and took a break from employment to focus on personal commitments. After completing her master’s degree, she has now returned to the workforce, securing a role in line with her new qualification. 

Scenario 5: PhD Graduate Starting First Formal Employment

Daniel completed his PhD in Biology. During his studies, he worked as a research assistant, but he has never held a full-time position. After graduation, he is now seeking his first full-time formal role as a researcher in the healthcare industry.