Half of employees opt to reduce EPF contribution to 8%

EPF staff attending to questions from customers at Service counter at the EPF headquaters in Kuala Lumpur.EPF has announce an engagement programme pertaining to various enhancement initiatives on the EPF scheme. AZHAR MAHFOF/The Star (20/4/2015)

KUALA LUMPUR: Fifty per cent of the Employees’ Provident Fund’s (EPF) members have chosen the option to decrease their contribution rate from 11% to 8%, Second Finance Minister Datuk Johari Abdul Ghani said. 

He said the reduction translated into about RM4bil in the hands of employees circulating in the market to stimulate the economy. 

“The remaining 50% of EPF members have opted to retain the 11% contribution. It is their choice. 

“The option for the (3%) cut was aimed at increasing public spending,” he told reporters following his working visit to the EPF headquarters on Tuesday. 

EPF members were given the choice to retain the 11% subscription by completing a “Notice to Contribute More Than Statutory Rate” which could be printed from the EPF website at www.kwsp.gov.my since Feb 2. 

The completed notice needs to be submitted to employers before being sent to the nearest EPF branch. 

On the 2017 Budget preparation, Johari said the Finance Ministry is currently engaging 20 focus groups to get feedbacks from stakeholders, including the public, non-governmental organisations and industry players. 

For example, two deputy finance ministers collected feedbacks on the cost of living and the capital market last week, he said, adding that the stakeholders provided feedbacks on how the Government could assist them in facing the economic challenges. - Bernama