Nation

T15 income rules may drive women to quit jobs for subsidies, says MP

KUALA LUMPUR: Muar member of Parliament Syed Saddiq Syed Abdul Rahman has expressed concerns that the T15 income classification could create a "moral hazard," particularly affecting working women in dual-income households.

The former president of the Malaysian United Democratic Alliance (Muda) said that this classification might pressure women to leave the workforce to keep household incomes below the threshold for certain subsidies.

"For instance, if a husband earns RM10,000 while his wife does not work, they qualify for all subsidies. However, in a household where the husband earns RM7,000 and the wife earns RM6,000, their combined income exceeds the T15 threshold, resulting in the loss of subsidies for petrol, education, and healthcare.

"The moral hazard here is that husbands may feel compelled to ask their wives to quit their jobs. If only one person is working, their household income would drop below the T15 threshold, allowing them to qualify for subsidies again. This could lead to situations where women are advised that 'it's okay, you can stay at home' because reducing their income would help the family regain those benefits.

"What we are witnessing is a policy that could ultimately push working women to leave their jobs, pressured to do so for the sake of their families and children's future," he said during the 2025 Budget debate in the Dewan Rakyat today.

Syed Saddiq urged the government to reconsider the T15 classification, stressing the importance of assessing household income collectively to avoid penalising dual-income families.

He also noted the lack of clarity surrounding the income group classification.

"This issue arises when announcements are made without thorough consideration. The public has heard the prime minister's speech and understands what they stand to lose.

"After June next year, families will be anxious about high clinic costs. Sending a child to university could now cost RM100,000, and medical studies might run into hundreds of thousands.

"When pressed, the response is often, 'It's okay, we'll think it through', but people are already worried. This is why the opposition must stand up for the public.

"Without current data, we must rely on official figures from the Statistics Department. However, there's a concern that ministers may use tactics similar to when they increased diesel prices, claiming they would surprise the public in an interview with Bloomberg."

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