EPF, the best medicine for docs

It’s a win-win situation. Contract doctors will get permanent jobs, EPF will get more contributors and the government will save billions of ringgit.

THE contract doctors, whose list of problems is long, just want permanent jobs to assure them of security; the government, on the other hand, has to worry about its hefty wage bill and the pension bill.

The government’s wage bill could hit more than RM120bil for 2023, with the pension scheme expected to cost RM31.07bil. It’s a heavy strain on the government budget.

So, is there a win-win solution for the doctors? There may be.

They could be absorbed into permanent service, but with a non-pensionable scheme.

The Employees Provident Fund (EPF) scheme is already in place, with some doctors now in the civil service already opting for this scheme instead of the government pension scheme.

Many contract doctors are also said to be in favour of signing up for the EPF scheme. After all, all they want are permanent jobs.

With EPF, they could live their lives like any other professional in the private sector. They also get job security and a nest egg to take care of them after retirement.

“They are keen on EPF; that seems like the right option,” said one doctor who has been a strong advocate for reforms in the healthcare sector.

Hartal Doktor Kontrak, in fact, says this is nothing new. It had proposed the EPF scheme as far back as 2021, when the government cited budget constraints as a hindrance.

“However, the issue then was that the Pensions Act had to be amended to allow doctors to be hired under the EPF scheme. Until now, they have not amended the act,” said a spokesperson for the group.

Deputy Health Minister Lukanisman Awang Sauni had said late last month that the government was still studying the need to amend the Act.

Discussions were also being held with the Public Service Department (JPA).

The ministry, he said, was examining the proposal in a comprehensive manner, as it would also involve medical staff in the pharmacy and dental sectors, in addition to solving the shortage of medical personnel such as nurses and physiotherapists.

The ministry cannot afford to “examine” this for much longer. The problem is getting more acute. Every year, many doctors enter and exit the system, and patience is running low in the medical fraternity.

A top EPF official also once agreed that doctors are a potential pool of contributors that has not been fully tapped.

If that vacuum is filled, the doctors will have retirement security, while the EPF will see an increased pool of contributors, leading to more money to invest and better dividends.

Freeing the government of part of the burgeoning pension bill will be helpful.

In some cases, the government provides monthly pension payments for a pensioner and the surviving spouse for up to 40 years. It just may not be practical.

Prominent economist Dr Yeah Kim Leng acknowledged that the government’s pension bill is “clearly unsustainable”.

“If left unchecked, the pension burden will crowd out future allocations for healthcare, education, social assistance for the poor and elderly, and environmental protection.

“These essential expenditures are also rising amid declining tax revenue-to-Gross Domestic Product trends,” says Dr Yeah.

While they are trying to solve the doctor’s dilemma, this may be a good time to re-examine the Pensions Act as a whole, with more professions in the civil service coming under the EPF scheme.

“Given inflation and the millennials’ preference for job mobility and flexibility, new government employees may find the mandatory EPF contribution a more attractive option than receiving half the last drawn salary under the pension scheme,” Dr Yeah added.

The government’s savings, meanwhile, can be ploughed into programmes and projects that are beneficial for the people, including healthcare.

We cannot afford to have the healthcare system brought to its knees because funds are needed for the huge pension bill.

The EPF proposal would definitely benefit both the government and healthcare workers.

It may just be the pill the profession – and the government service as a whole – needs.