Employees aged 55-60 to receive 12% EPF contribution from employers this month

Employees aged 55-60 to receive 12% EPF contribution from employers this month
Business & Markets 2013
Written by Ho Wah Foon of theedgemalaysia.com
Thursday, 22 August 2013 14:17

KUALA LUMPUR (Aug 22): The Employees Provident Fund (EPF) announced today that from this month onwards, employees aged 55-60 will enjoy 12% EPF contribution from employers.

Previously, they could only enjoy 6% contribution from their employers.

In a statement, the EPF said: “More than six million EPF active members stand to benefit from the EPF contribution rates which stay unchanged until age 60.

“Effective from August 2013 wages, employees aged up to 60 will receive EPF contributions at 12% from their employers (or 13% for employees earning a monthly wage of RM5,000 and below) while employees themselves will continue to contribute 11%.”

Previously, those aged above 55 were only required to contribute half of the regular statutory rate, same as their employers.

Earlier in the morning, EPF deputy chief executive officer for operations, Datuk Ibrahim Taib, told a media conference: “The implementation of full contribution rates until age 60 would help members accumulate their savings in the long term for their retirement.”

He added that as Malaysians are blessed with a longer life to 75, sustainability in savings is very important. This will ensure retirees will not become a financial burden to their children or loved ones.