The extra cash from the 3% of workers' monthly contribution to EPF may not be enough to help them with living costs. – The Malaysian Insider file pic, January 30, 2016.Employees should opt to maintain their 11% contribution for their Employees Provident Fund (EPF) to avoid affecting their savings, says Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan.
The Star today quoted him as saying that contributing 3% less could erode the retirement savings for 75% of EPF contributors and result in loss of RM540 million out of RM18 billion contributed annually by private sector employees.
He said for those earning below RM5,000 monthly, the extra money would only be a small sum.
"If there is no reason to take the extra money, my advice is, they should opt to maintain their contribution,” he told the daily.
Datuk Lok Yim Pheng, secretary-general for Cuepacs, the country's top umbrella union for civil servants, was also quoted as saying that employees should weigh their options carefully.
She advised against reducing the EPF contribution if the extra money was not essential to offset the current cost of living.
She said the money should be used to provide for children's education or to furnish housing or car loans.
Meanwhile, Federation of Malaysian Consumers Association (Fomca) secretary-general Datuk Paul Selvaraj told The Star that the mandatory EPF savings was to guarantee enough retirement savings, and any reduction in their contribution should be thought out carefully. – January 30, 2016.
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