2019 EPF Updates Include Decreasing Senior Staff Contribution to 4%

The Employees Provident Fund (EPF) has reduced the minimum employers’ share of the statutory contribution rate for employees aged 60 and above to 4% per month. The fund also set the employees’ share of contribution for this age group at zero, according to its statement.

EPF said the new minimum statutory rates are effective this month for the contribution month of February 2019. The new minimum statutory rates were previously proposed in Budget 2019.

The fund said “The move to reduce the statutory contribution rates follows the government's proposal during the tabling of Budget 2019 on Nov 2, 2018, to help increase the take-home pay for employees who continue to work after reaching age 60.”

It also said that the reduction in employers’ share to minimum 4% is meant to encourage employers to hire workers above 60 years of age. This will ensure the population above 60 years old to stay productive and active in the economy (read: Why Hire Seniors?)

Before the revision, employers were liable to contribute 6% every month for employees aged 60 and above, while employees were required to contribute 5.5%.

In last year’s Budget 2019, the government aimed to improve Malaysia’s social protection system as it balances long-term imperatives with short term economic needs. Among the proposals were:

Reducing statutory contribution rate for post-retirees
Tax relief split between EPF contribution and takaful and life insurance premiums
To continue e-Kasih RM40 monthly contribution for i-Suri

For more details, you may refer to the EPF website at www.kwsp.gov.my or call the EPF Contact Management Centre at 03-89226000.

Other EPF Updates

The EPF aligned the minimum contribution for employees and employers with Minimum Wages Order (Amendment) 2018 starting 1st January 2019.
The new basic savings target for EPF members’ have been raised to RM240,000, effective 1st January 2019.
The fund’s total investment income for the third quarter of 2018 rose 12.82% to RM14.61 billion from RM12.95 billion recorded during the same period last year.
The EPF announced the extension of Dato’ Mohamad Nasir Ab Latif’s term as the fund’s Deputy Chief Executive Officer (Investment) until 31 December 2019.

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