Women walk past the EPF building in Kuala Lumpur. Bernama file photo
KUALA LUMPUR: Beginning Jan 1, 2019, the minimum contribution of employeesand employersto theEmployees Provident Fund (EPF) will be aligned with the Minimum Wages Order (Amendment) 2018 of RM1,100 for both Peninsular Malaysia, and Sabah and Sarawak.
The EPF said a minimum contribution of RM264wasexpected to be received from every workerwho earned monthly wages, subjected to being employed for the full month, under the new measure.
Different minimum contribution may apply to members who are salaried on a weekly, daily or hourly basis.
The EPFsaid notices hadbeen sent to all registered employers on thismatterand itwouldwork closely with employers to ensure the smooth implementation of thepolicy.
Alignment of the minimum wage should help EPF members achieve sufficient savings for theirretirementand help strengthen their future financial resilience,said Chief Executive Officer Tunku Alizakri Alias in a statement today.
He said atotal of 1.64 million, or 23 per cent, of the 7.11 million active EPF memberscontributed less than the current minimum wage of RM1,000.
Statistics from the EPF showed that 64per cent of memberswho reached the age of 54 havesavings below RM50,000, which is a meagre sum when taking into account the rising cost of living and household debt.
TunkuAlizakrisaid low wages,particularly among low-income earners, wasone of the primary causes why many Malaysian workersretired with insufficient funds.
With the proven success of EPFs Retirement Advisory Services for members, the provident fund will be providing free retirement advisory services for employers, including having dedicated officers to manage the employers relationship with EPF, he added.
For more information, contact the EPF Contact Management Centre at 03-89226000,visit the EPF website at www.kwsp.gov.myor visit any of the 67 EPF branches nationwide. – Bernama
SUMBER : theborneopost.com