Are allowances mandatory in Malaysia?

No, in Malaysia, allowances are not mandatory under the law.
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However, it is common for employers to offer certain allowances as part of the compensation package.
Standard allowances include car and parking allowances, rent-free accommodation, telephone allowances, and travel-related allowances (petrol, tolls) for official duties. Travel allowances are exempt from tax up to RM 6,000 per year. These allowances are typically provided at the employer’s discretion, not required by Malaysian labor law.