No discussion yet on 20% EPF contribution proposal, says PM

Photo: Bernama

PETALING JAYA: Putrajaya has yet to discuss a proposal for employers to contribute 20% towards the Employees Provident Fund (EPF), says Prime Minister Datuk Seri Anwar Ibrahim.

“It hasn’t been discussed yet. It wasn’t discussed,” said Anwar briefly before leaving the Employees Provident Fund (EPF) headquarters in Kwasa Damansara on Monday (May 8).

Anwar was speaking briefly to reporters after officiating the new EPF building known as Menara KWSP.

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Last week, Anwar said the Cabinet would discuss a proposal to raise employers' contribution to 20 per cent on their respective employees’ EPF accounts and it drew mixed reactions.

Several groups have raised concerns about the proposal, as it could raise the cost of doing business in Malaysia.

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Presently, employees contribute 11 per cent of their monthly salary to the EPF while employers contribute another 12 to 13 percent of the person’s salary according to the statutory rate.

The proposal to raise the EPF was part of the Union Network International Malaysia Labour Centre’s (UNIMLC) 12-point increase request, which included raising the employers’ EPF contributions and the retirement age.

The UNIMLC had proposed employers' EPF contribution be raised to 20 percent from the current 13 percent earning RM4,000 and below.