KUALA LUMPUR: The Employees Provident Fund (EPF) and GoGet Malaysia are collaborating to protect and prepare gig workers known as GoGetters for retirement through the launch of an integrated savings programme.
GoGet, a demand work app, will be the first in Malaysia to include EPF contribution features in its platform that is integrated and customisable, as part of efforts to encourage GoGetters to contribute for their retirement via voluntary contribution programmes such as i-Saraan and self-contribution.
In a joint statement today, they said gig workers with existing EPF accounts simply have to give consent to opt in to the programme and set their contribution rate.
The bonus that GoGetters receive from GoGet will also be part of the income that is contributed to the EPF.
GoGetters, who are working part-time and attached to a formal employer or those aged 55 and above, are encourage to contribute via the self-contribution programme, which is open to all individuals who can contribute any time up to a maximum of RM60,000 per year.
The feature is highly flexible as GoGetters are able to adjust their contribution rates or opt out of the programme at any point.
EPF chief executive officer Datuk Seri Amir Hamzah Azizan said GoGetters contribute immensely to the economy and leaving them vulnerable without a social safety net for retirement would have far-reaching socio-economic consequences in the near future.
"The COVID-19 pandemic has changed the working landscape greatly and we are seeing a steep increase in the number of self-employed individuals in Malaysia.
‘’For some, self-employment can be an appealing career path, but it does not come with a built-in retirement plan. This is where the EPF’s role is crucial as we want them to have the support of a formal retirement plan for their retirement security,” he said.
GoGet chief executive office Francesca Chia said by starting to save early and consistently even with a small amount, GoGetters will be able to benefit from the effect of compounding dividend.
For instance, an individual, who saves RM50 a month for 30 years, will be able to accumulate savings of RM47,000 after 30 years, or more than double their total contribution of RM18,000.
‘’If GoGetters save RM140 monthly, they will be able to maximise the i-Saraan incentives and accumulate RM131,000 on the back of RM50,400 total contributions in 30 years,’’ Chia said.
In September 2021, the EPF inked a similar collaboration with Grab Malaysia for the same purpose.
At present, more than half of Malaysia’s labour force is not covered for retirement income security. - Bernama
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