PTPTN PGB - What's That? Loan Repayment, That's What. Team Team

Last updated 21 March, 2019


PTPTN borrowers will soon have to repay their loans in specific amounts depending on their monthly income by automatic deduction - whether they like it or not. PTPTN will be working with several different agencies such as EPF to carry out the PGB, Potongan Gaji Berjadual. Want to know how much you'll have to repay? Read on to find out.

Wan Saiful Wan Jan, chairman of PTPTN, said that PTPTN will be moving forward with the salary deduction scheme for PTPTN repayment with PGB, Potongan Gaji Berjadual. This is inline with the announcement by Finance Minister Lim Guan Eng in the 2019 Budget.

"Fair as it ensures that those not earning as much will not feel burdened while the rich will not be able to take advantage." - Wan Saiful Wan Jan on the PGB scheme.

PGB deductions will work very much like the current PCB (Potongoan Cukai Berjadual) deductions for income tax. Employers will automatically deduct the loan repayment amount from an income. Employers who help to repay their staff's PTPTN loans via the PGB scheme will also be able to enjoy tax relief for the amount paid. The scheme will begin in January 2019.

Income information of the borrowers will be obtained through cooperation with other agencies such as EPF and the Immigration Department. Employer information will be obtained in the same way too.


The scheme will see the following deductions (by percentage) according to the monthly income:

  • RM2,000 and below = 0%
  • RM2,001 to RM2,499 = 2% (RM40 - RM49.99)
  • RM2,500 to RM2,999 = 3% (RM75 - RM89.99)
  • RM3,000 to RM3,999 = 5% (RM150 - RM199.99)
  • RM4,000 to RM5,999 = 8% (RM320  - RM479.99)
  • RM6,000 to RM7,999 = 10% ( RM600 to RM799.99)
  • RM8,000 and above = 15% (RM1,200 and above

PTPTN Repayment Exemption

There will, of course, be exemptions to the repayment. Students can be exempted from the loan repayment, provided they fulfill the following requirements:

  • Obtain first-class honours
  • Complete their studies in 2019
  • Full-time students
  • Complete studies within the given time frame
  • From B40 and M40 households after study completion

Senior citizens earning between RM2,000 to RM4,000 and have consistently been paying their loans for three years before they reach the age of 60 will have their loan balance waived.

As it stands currently, there is a total of 1.4 million PTPTN borrowers who have not made repayments (that's a lot!). 225,000 borrowers, on the other hand, are earning below RM2,000 and will be exempted from repayment.

Will this be a good move to have PTPTN borrowers repay their dues?

Information sourced from New Straits Times.

The team is comprised of many talented individuals, sharing their knowledge, experiences and research to help others make better financial decisions.


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