Higher EPF contribution catches employers by surprise

EMPLOYERS were generally surprised by the proposal to raise their contributions by 1% to 13% for those earning less than RM5,000, saying it would result in additional costs amid a challenging economy.

The move to increase employers' contributions to the Employees Provident Fund (EPF) is to help those with insufficient savings to bear the cost of living upon retirement. This measure is expected to benefit 5.3 million EPF contributors.