Proposal for bosses to pay 20% to EPF under study, says sec-gen

PETALING JAYA: The proposal for employers to contribute 20% towards the Employees Provident Fund (EPF) is being looked into as its implementation involves many procedures, says Datuk Seri Dr Zaini Ujang(pic).

“We will discuss that,” said the newly appointed Human Resources Ministry secretary-general.

“(If implemented, we) need to change the Acts and there are other issues (to tackle),” he told The Star in an interview yesterday.

Zaini said the government would give comprehensive consideration to reach an all-inclusive approach.

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“We not only have EPF but also Socso (Social Security Organisation) contributions.

“We want to do it through an overall approach later,” he added.

Currently, employees contribute 11% of their monthly salary to the EPF, while employers contribute another 12% or 13% of the person’s salary, according to the statutory rate.

The contribution rate for Socso consists of 1.75% from the employer’s contribution and 0.5% from the employee’s monthly wages.

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The rates are provided for under the Employees Provident Fund Act 1991 and Employees’ Social Security Act 1969.

On May 2, Prime Minister Datuk Seri Anwar Ibrahim acknowledged calls by employees for employers to contribute 20% towards the EPF and said it would be brought to the Cabinet for discussion.

He was asked to comment on Union Network International-Malaysia Labour Centre’s 12-point request, which included the raising of employers’ EPF contributions and the retirement age.

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