Bank employees will soon enjoy 0% interest in their housing loans for the first RM100,000.
All member banks under the Malayan Commercial Banks' Association (MCBA) have agreed to grant the benefit, effective April 1.
The benefit was offered in the new collective agreement (CA) inked by MCBA and the National Union of Bank Employees (NUBE).
MCBA president Nora Abd Manaf said it is hoped that the waiver of interest for the first RM100,000 will help more employees to earn their dream home earlier.
The new benefit aims to raise the disposable income of employees, especially those in the B40 category and to support he government's effort to increase home ownership among lower-income communities.
The 0% interest rates also applies to employees who have existing staff housing loans.
Under the new CA, employees of MCBA member banks will also receive a salary adjustment of up to 12%.
Clerical employees will receive a 10% adjustment while non-clerical employees will receive 12%.
The starting salary of different employee groups covered in the CA will also be adjusted up by 12% to 16%, with their maximum salary raised by 16%.
The monthly cost-of-living allowance (COLA) will also be revised to RM600 from RM400, among other benefits.
Combining the basic salary and COLA, the starting monthly pay for a fresh clerk will be RM2,400, excluding a two-month contractual bonus payable each December.