Worker Accommodation Rental Deduction: RM150 Guide for 2026

The new maximum is RM150 from 1 March 2026

JTKSM states that the maximum rent or accommodation charge is RM150 per worker per month under the 2026 amendment, effective from 1 March 2026.

The figure is a maximum, not an automatic amount that every employer may deduct in every situation.

Before changing payroll, the employer should verify:

• the accommodation has a valid Certificate for Accommodation;
• the worker is actually provided with that accommodation;
• the employment contract permits the charge;
• the proposed amount does not exceed the contractual amount without written agreement;
• accommodation is not contractually promised free of charge; and
• the payroll record identifies the deduction clearly.

A valid accommodation certificate is essential

JTKSM’s FAQ states that a deduction cannot be made where the accommodation does not have a valid Certificate for Accommodation.

This applies whether the employer provides the property directly or places employees in a centralised accommodation. The employer should obtain a current copy of the certificate from the provider and monitor its expiry.

A useful payroll control is to link every accommodation deduction code to:

• the property address;
• certificate number;
• certificate expiry date;
• worker move-in date; and
• worker move-out date.

The contract still matters

The maximum permitted rate does not override the employment contract automatically.

Contract already permits RM150 or a lawful variable amount

The employer should verify that the wording supports the amount and that all other legal conditions are satisfied.

Contract states RM100

JTKSM states that an employer cannot deduct more than the amount written in the contract unless written agreement has first been obtained from the affected worker to change the terms and conditions.

Contract states accommodation is free

The employer should not begin charging rent unless written agreement has first been obtained to change the relevant terms.

Contract is silent or unclear

The employer should not assume silence permits the deduction. The contract and applicable wage-deduction requirements should be reviewed before payroll implementation.

Centralised accommodation is included

An employer may make the deduction where employees stay in a centralised accommodation, provided the accommodation has a valid Certificate for Accommodation and the other conditions are satisfied.

The provider’s invoice to the employer and the amount deducted from the worker are separate commercial and payroll matters. The employer should not simply pass through any provider charge without checking the legal maximum and employment terms.

Do not charge separately for required amenities

JTKSM’s general guidance states that the other facilities required within the accommodation are the employer’s responsibility and should not be separately deducted from workers as additional accommodation facilities.

Employers should avoid creating multiple payroll lines that effectively exceed the permitted accommodation charge by describing parts of the accommodation as separate services.

Recommended payroll controls

Before the first deduction:

1. verify the certificate;
2. review the worker’s contract;
3. obtain written agreement where terms must change;
4. confirm the worker’s actual occupation date;
5. set the correct amount and effective payroll month;
6. explain the deduction to the worker in a language the worker understands; and
7. retain the supporting documents.

During each payroll cycle:

• stop deductions for workers who have moved out;
• check expired or replaced certificates;
• reconcile the occupant list with payroll;
• investigate duplicate or excessive deductions; and
• retain itemised payslip records.

Practical examples

Example 1: Valid certificate and contract states RM150

The employer may generally deduct up to RM150 per month, subject to the complete legal and payroll requirements.

Example 2: Valid certificate but contract states RM100

The employer should not increase the deduction to RM150 without first obtaining the worker’s written agreement to amend the relevant term.

Example 3: Contract permits a charge, but the certificate expired

The employer should not continue the accommodation deduction merely because the worker remains in the building. The certificate status should be resolved first.

Example 4: Worker moves out halfway through the month

The treatment should be checked against the contract, payroll policy and actual accommodation arrangement. The employer should not continue a full recurring deduction after the worker is no longer provided with the accommodation.

Records to retain

• worker’s contract and amendments;
• written consent where required;
• valid Certificate for Accommodation;
• move-in and move-out records;
• monthly occupant list;
• payroll deduction records;
• payslips;
• provider agreement and invoices where relevant; and
• worker communications about the charge.

Common mistakes

• Treating RM150 as a compulsory deduction.
• Increasing every worker from RM100 without reviewing contracts.
• Deducting charges for uncertified accommodation.
• Continuing deductions after a worker moves out.
• Charging additional facility fees that effectively exceed the permitted amount.
• Failing to monitor the certificate expiry date.
• Using one property certificate to justify deductions for workers housed elsewhere.

A sensible next step

Run a payroll-to-accommodation reconciliation. For every worker with an accommodation deduction, confirm the property, valid certificate, contract amount, written agreement where needed and current occupancy status.