Child Relief in Malaysia: Eligibility, Tax Benefits & How to Claim

Raising kids in Malaysia isn’t cheap. From school fees to diapers, food, and extracurricular activities, parents are constantly digging into their wallets to give their children the best.

But here’s some good news: the Malaysian government gets it.

They’ve introduced child relief, a tax deduction that helps parents lighten their financial load by reducing their taxable income.

In this article, we’ll break down what child relief is, who can claim it, how much you can save, and the simple steps to make it happen.

By the end, you’ll see why this is a relief for working parents—and how employers like you can support your team to take full advantage of it. Ready? Let’s get started!

What is Child Relief in Malaysia?

Child relief is a tax deduction available to parents as a way to reduce their taxable income based on the number and status of their dependent children.

Taxpayers can lower the amount of tax they need to pay.

Parents can claim child relief for children under 18, children pursuing higher education, and children with disabilities (OKU).

Each category has different tax relief amounts, which are set by the LHDN (Lembaga Hasil Dalam Negeri).

The idea is simple: the more kids you’re supporting, the less tax you pay. It’s a small but meaningful way the government says, “Hey, we know parenting is tough—let us help.”

For employers, this is also a perk worth explaining to your employees—it could boost their take-home pay without you needing to raise salaries!

Eligibility for Child Relief in Malaysia

Taxpayers who are legal parents, step-parents, or adoptive parents of a child can claim child relief.

However, the child must be unmarried and financially dependent on the claimant.

To qualify for child relief, the child must meet these conditions:

Must be a biological, legally adopted, or stepchild.
Must be financially dependent on the parent.
Cannot have their own significant income, excluding scholarships or grants.
Must fall under one of the child relief categories set by LHDN.

If both parents are still married and living together, only one parent can claim 100% of the child's relief.

It is recommended that the parent with the higher income claims the deduction, as it will have a greater impact on tax reduction.

Divorced or separated parents can each claim 50% of the child relief, reflecting their joint financial contribution to the child's upbringing.

Employers, this is something to share with your team. A quick chat about child relief could help your staff save more—and who doesn’t love a happier paycheck?

Which Spouse Should Claim for Child Tax Relief?

For parents who file taxes separately, the decision on who should claim child relief depends on income levels.

The higher-earning parent should claim it, as it will help reduce their taxable income more effectively.

However, if parents are divorced and share financial responsibility, both can claim half of the child relief deduction each.

This helps to balance the tax benefits between both parents.

Either way, it’s worth a quick discussion with your spouse or ex to make sure you’re not missing out.

Types of Child Relief in Malaysia (YA 2023 & 2024)

The Malaysian government provides different categories of child relief to support parents.

The relief amounts differ based on the child’s age, education level, and disability status.

1. Ordinary Child Relief

Parents can claim RM2,000 per child for children under 18 years old. This is the basic child relief available to all parents.

2. Child Relief for Higher Education

For children aged 18 and above who are enrolled in full-time education, such as A-levels, foundation programs, or certificates, parents can claim RM2,000 per child.

3. Disabled Child Relief (OKU Child)

Parents of children with disabilities can claim RM6,000 per child, regardless of age.

4. Additional Tax Relief for Tertiary Education

If the child is pursuing a diploma or higher in Malaysia, parents can claim RM8,000 per child. The same applies to children studying overseas at the degree level or higher.

5. Childcare Centre and Kindergarten Fees Relief

Parents who enroll their children (aged six and below) in a registered childcare center or kindergarten can claim RM3,000 in tax relief.

How Much Child Relief Can You Claim?

Different categories of tax relief apply based on a child's age, education level, and disability status. Below is the updated breakdown of the maximum relief amounts:

Category	YA 2023 Amount (RM)	YA 2024 Amount (RM)
Ordinary Child Relief (Below 18 years old, unmarried)	2,000	2,000
Child in Pre-University Education (A-Level, Matriculation, Foundation, Certificate)	2,000	2,000
Child in Higher Education (Diploma, Degree, Master, PhD, etc.)	8,000	8,000
Disabled Child Relief (OKU Child)	6,000	6,000
Disabled Child in Higher Education	14,000 (6,000 + 8,000)	14,000 (6,000 + 8,000)
Childcare Centre and Kindergarten Fees (Age 6 and below)	3,000	3,000

Example Calculation of Child Relief

Let's say an employee has:

A 5-year-old child attending a registered kindergarten.
A 19-year-old child in diploma studies.
A disabled child pursuing a bachelor’s degree.

Total Tax Relief:

Kindergarten fees relief: RM3,000
Diploma-level child relief: RM8,000
Disabled child in higher education: RM14,000

Total Claimable Relief: RM25,000

This means the employee's taxable income is reduced by RM25,000, which significantly lowers their income tax.

How to Claim Child Relief in Malaysia

Below are the steps for claiming child relief:

Step 1. Filing Through e-Filing (HASiL)

The claim for child relief must be submitted through the LHDN e-Filing system (HASiL) when completing the BE Form (for resident individuals without business income).

Step 2. Required Documents for Submission

Provide documents such as:

Child’s birth certificate or adoption papers.
Proof of enrollment for higher education claims.
Disability certification for OKU child relief.
Childcare fee receipts from registered institutions.

Step 3. Deadlines for Tax Relief Claims

Personal income tax returns for individuals must be filed by April 30 each year. Employers can remind employees about these deadlines to avoid late submissions.

Why Employers Should Care About Child Relief

If you’re running a business, you might be wondering, “How does this affect me?” Here’s the thing: happy employees are productive employees.

When your staff know about perks like child relief, they feel supported—and that can translate to loyalty and better work.

Plus, it’s a great way to attract talent. Imagine telling potential hires, “Hey, we’ll help you understand tax benefits like child relief to keep more money in your pocket.”

That’s a win-win! You don’t have to be a tax expert—just point them to resources like this article or LHDN’s website.

FAQ

Can I claim child relief if my child is studying overseas?

Yes, if your child is pursuing a degree or higher education outside Malaysia, you can claim RM8,000 per child.

What happens if both parents claim the same child?

If both parents file separate tax returns but try to claim full relief for the same child, LHDN may reject one of the claims. In such cases, the tax authority may request proof of financial responsibility from both parents.

Is there a limit to the number of children I can claim?

There is no limit to the number of children a parent can claim. However, each child’s tax relief category applies individually.

Do adopted children qualify for child relief?

Yes, legally adopted children qualify for child relief, provided they meet the eligibility criteria.

Can I claim relief if my child is working part-time?

If the child has an income but earns below the deduction amount, parents can still claim child relief. However, if the child’s total income exceeds the eligible deduction, they may no longer be considered dependent.

Struggling to Keep Loyal Employees? Show You Care!

Many employees feel stressed about rising childcare costs and balancing work with family.

Without support, they may look for jobs that offer better child relief benefits.

When companies provide family-friendly perks like childcare assistance or tax relief guidance, employees feel valued, stay longer, and perform better.

Want a team that’s loyal and motivated? Show you care by offering the right benefits. Post your job today and hire employees who grow with you!