JOHOR BARU: Cuepacs has suggested for an increase in the Employees Provident Fund (EPF) contributions to help increase savings for employees' retirement.
Its president Datuk Azih Muda said that the employers contribution for EPF should be increased from 12% to 15% while individual contributions should also be increased by one or two percent from its current 11%.
“We have been hearing complaints that despite saving up for years, some do not even receive RM50,000 when they retire.
“As we move towards becoming a developed nation, the Consumer Price Index (CPI) is expected to rise by 8% to 9% while wages will increase by only one to two percent, he told reporters after attending Johor State Cuepacs triennial general meeting (2016-2019) here on Monday.
Azih also recommended that the Government reviews the minimum wage for both the government and private sectors every three years instead of five years.
Civil servants should also receive at least a 10% increment every three years, he said, adding that additional allowances and benefits should also be re-evaluated from time to time.
He stressed that the increase in CPI should be seriously taken into account when deciding on minimum wage and increment percentage.
If employees do not receive a justifiable increment, how will they ever be able to buy their own houses when prices of properties are increasing by RM30,000 on the average annually, he questioned.
Azih also urged EPF to have better control of the funds and ensure that documents cannot be forged or falsified by conmen.
“We also hope that EPF will make better investments by taking similar approaches as other financial service providers such as ASB, where dividends of between 8% to 10% are announced annually, he added.