However, Malaysian Employers Federation urges those contributing less than RM6,000 a year to EPF to maintain 11% deduction.
SUBANG JAYA: Most employees have opted for a 3 per cent reduction in their contribution to the Employees Provident Fund (EPF), according to the Malaysian Employers Federation (MEF).
However, MEF executive director Shamsuddin Bardan advised employees who contribute less than RM6,000 per year to EPF not to opt for the 3 per cent reduction.
“If you contribute more than RM6,000, then maybe you could use the money to invest somewhere else. If not, it’s not advisable to do so,” he said at a press conference at today.
Shamsuddin revealed that 78 per cent of employees had opted for the new rate of 8 per cent contribution, while the remaining 22 per cent opted to retain the 11 per cent contribution to EPF.
“From March onwards, everybody has to contribute 8 per cent. If you don’t want to, you need to fill in a form to opt for the 11 per cent or higher.”
Previously, Shamsuddin had advised workers not to opt for the 3 per cent reduction as it could affect their retirement savings.
He said private sector employees contribute about RM18 billion annually to EPF and the reduction would translate into RM540 million in the hands of employees.
“But the extra money will only be a small sum for a contributor from the lower-income bracket or one who earns less than RM5,000 a month.
“If there is no reason to take the extra money, my advice is, they should opt to maintain their contribution,” he said.
-FMT NEWS-
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