Higher EPF contribution for employees aged 55-60

Higher EPF contribution for employees aged 55-60
Business & Markets 2013
Written by theedgemalaysia.com
Friday, 23 August 2013 11:08

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

Previously, employers' share of contribution to the EPF was 6% for employees in that age bracket.

The EPF said in a statement: "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, 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%."

Earlier yesterday morning, EPF deputy CEO for operations, Datuk Ibrahim Taib, told a media conference that 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 span, sustainability in savings is very important. This will ensure retirees will not become a financial burden to their children or loved ones.



This article first appeared in The Edge Financial Daily, on August 23, 2013.