PETALING JAYA: Small and medium enterprises (SMEs) are willing to hire and pay a fair salary for women returning to work, with some buoyed by a proposed tax exemption, and many say they have uncovered some gems.
Following Prime Minister Datuk Seri Anwar Ibrahim’s Budget 2025 announcement that the government is proposing additional income tax exemption of 50% for 12 months to employers that hire women who are returning to the workplace, SMEs have begun employing such women.
A restaurant which had been looking to hire a supervisor at its new branch found a prospective employee in a woman who had not worked for the past five years.
M. Radhi, the senior manager of the restaurant here, said he decided to hire the woman as she had expansive experience in the food and beverage industry.
“At first, we were unsure about hiring her due to the big gap in her resume, but when interviewing her, she had a great personality and was who we were looking for.“We wanted someone capable of professionally leading and commanding other staff, which is hard to find when you are in the service industry,” he said.
Radhi added that the government’s plans to provide tax incentive for SMEs to hire women returning to the workplace is a great initiative.
“We often employ women, but rarely get those who want to work in the F&B sector after caring for their young ones – I hope this would provide an opportunity for employers and these women to work together.
“We also hope this could be the stepping stone from the government to create more policies and incentives that could benefit both employers and employees.”
Sodexo Malaysia and Singapore human resources director Bajirao Nawale said the additional tax exemption would encourage companies to hire such women.
“By easing the financial burden, especially for SMEs, this incentive makes it more attractive for companies to hire women with career gaps, helping them re-enter the workforce with a reduced risk for employers.
ALSO READ: ‘Devalued, overlooked, and seen as disposable’
“The initiative will promote gender diversity and support women’s economic empowerment, providing them with the opportunity to regain financial independence and advance their careers,” he said.
Bajirao said Sodexo has implemented several measures to foster an inclusive and equitable workplace, such as conducting regular gender pay equity audits.
The move is to ensure fair compensation across all levels, particularly for management and middle management roles, ensuring pay parity between male and female employees, he added.
Many women who return to the workforce come with valuable skills and fresh perspectives, often gained through their caregiving roles, said Cybozu and Kintone chief executive officer Yoshihisa Aono.
He said these women should be given the opportunity to work and should also be offered stable incomes and work flexibility due to their roles.
He also said employers should improve parental leave policies to be more inclusive, adding that this could make a real difference.
“When both parents can share caregiving duties, it takes pressure off mothers and gives them the space they need to return to work at their own pace.
“And beyond being the right thing to do, it’s good for business too – encouraging family-friendly policies can reduce turnover.
“For example, at Cybozu, our attrition rate stayed below 5% last year, which is quite low for the IT sector,” he said, adding that the government needs to back its efforts with campaigns to shift mindsets and see caregiving as a shared responsibility.
ALSO READ: Caregiving keeps women out of the workforce
Berkshire Media executive director Fatin Nadia said a career break does not determine a potential employee’s worth, and the government’s incentive is a positive move.
“The gap isn’t an issue at all. Growing up, I knew women who had to take career breaks to raise their kids or take care of an ageing or sick parent.
“Some short breaks, some long – so for me, I don’t think it’s fair if life’s challenges are seen as something that diminishes their value,” she added.
Fatin said only employers who do not value women or are prejudiced feel that women who take career breaks should be rated at a lower value.
She said at her company, potential employees go through an interview and a case study test to determine their capability, and their salaries are based on market rates.
“As long as their experience and skills are relevant to the role, we are open to hiring them.”