Gig workers unsure about making EPF and Socso contributions


  • Nation
  • Sunday, 07 Jun 2020

PETALING JAYA: Gig workers want more information on contributions for EPF and Socso following the government’s announcement of a matching grant under the Penjana Economic Recovery plan.

Many of them said that they would not have the cash to contribute.

Chu Zheng Ning, who has been a Grab driver for a year and a half, said he would not be making such a contribution to the Employees Provident Fund unless there was more information on how the grant would be made.

Chu, 25, said if the government matched his contribution to EPF, he would do so but if there is a maximum contribution of RM250 from the government as per EPF’s i-Saraan, then it “does not sound motivating”.

“I understand that EPF is for our retirement fund and we should save up for it. But I have not contributed to EPF because it is not required for e-hailing drivers. As for Socso’s (Social Security Organisation) contribution, I will continue to pay for it since it is compulsory for e-hailing drivers,” he added.

On Friday, Prime Minister Tan Sri Muhyiddin Yassin announced a RM50mil matching grant for gig economy workers who contribute to EPF’s i-Saraan and Socso’s Employment Injury Scheme.

EPF said more details would be released at a later date.

Currently, under EPF’s i-Saraan – a voluntary contribution with incentives for self-employed workers – EPF members below 55 years old who are contributing will receive an additional special government incentive of 15%, subject to a maximum of RM250 annually.

The special incentive is given out from 2018 until 2022.

Muhammad Shukery Muhammad Affendy, 24, said he would not be contributing to EPF as he does not have the means to do so.

“Sometimes you need the cash at hand and with EPF, you can only withdraw when you are 55 years old. So I won’t be contributing right now as I don’t have the liquidity to do so,” said the personal shopper on GoGet, an on-demand workforce platform.

Nor Amira Wahab, 34, a dispatcher on GoGet, said she would decide whether to contribute to EPF or Socso if more information on the benefits are known.

“We are freelancers. If anything happens on the street, (contributing to EPF or Socso) won’t help you,” she said.

Phoenix Judd, a 32-year-old self-employed beautician for the past eight months, also said she would not contribute to EPF now, although she had done so before, to save money.

Mimi Chua, who is a freelancer on GoGet, said she would continue to make self contributions to EPF as she has done so even before the Covid-19 pandemic.

“I do not know about the details but I will continue to save. As we are self-employed, it is very important to have compulsory savings,” said Chua, who is in her 40s.

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gig workers , EPF , socso

   

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