Worrying trend: The EPF building in Kuala Lumpur. The fund says many Malaysians do not have enough wealth for their retirement years.
KUALA LUMPUR: The Employees Provident Fund (EPF) has scrapped the RM50 minimum ruling for members who voluntarily contribute to their accounts with effect from July 1, 2018.
While they can contribute any amount to the retirement savings fund, the accumulated maximum amount to be contributed into each account, however, remains capped at RM60,000 per annum.
The voluntarily contribution to the EPF accounts is either through the 1Malaysia Retirement Scheme (SP1M), self-contribution or the top-up savings contribution.
EPF deputy CEO Datuk Mohd Naim Daruwish said: “A little savings set aside today will go a long way in ensuring the retirement wellbeing of our members in the future.
“Therefore we want to ensure that members are able to contribute in any amount, at any time within their financial abilities through the flexibilities introduced.”
Naim said the option to make voluntary contributions is in line with a retirement agenda that is inclusive, as it is open to all Malaysians who are self-employed.
“Non-Malaysians with a legal work permit may also contribute voluntarily by registering as a member,” he said.
In addition to the removal of the RM50 minimum contribution, the top-up savings contribution will now enable members to contribute any amount to Account 1 belonging to their sons or daughters who are also EPF members.
Previously, the scheme only allowed EPF members to contribute to their parents’ or spouse’s Account 1.
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