Employment & Labour Law

EPF to align Monthly Contribution with New Minimum Wages Order

Date: 06 December 2018; Type: Legal News; Source: Bernama

KUALA LUMPUR, Dec 6 (Bernama) - Beginning Jan 1, 2019, the minimum contribution of employees and employers to the Employees 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 RM264 was expected to be received from every worker who 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 EPF said notices had been sent to all registered employers on this matter and it would work closely with employers to ensure the smooth implementation of the policy.

“Alignment of the minimum wage should help EPF members achieve sufficient savings for their retirement and help strengthen their future financial resilience,” said Chief Executive Officer Tunku Alizakri Alias in a statement today.

He said a total of 1.64 million, or 23 per cent, of the 7.11 million active EPF members contributed less than the current minimum wage of RM1,000.

Statistics from the EPF showed that 64 per cent of members who reached the age of 54 have savings below RM50,000, which is a meagre sum when taking into account the rising cost of living and household debt.

Tunku Alizakri said low wages, particularly among low-income earners, was one of the primary causes why many Malaysian workers retired with insufficient funds.

“With the proven success of EPF’s 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.my or visit any of the 67 EPF branches nationwide.

MY Bernama

Asean LIP works with Bernama to bring you the latest Malaysian legal news. Bernama is the national news agency of Malaysia. You shall not reproduce the above/ attached materials in whole or in part without the prior written consent of the Publishers and/or Bernama. Neither the Publishers nor Bernama will be liable for any loss, injury, claim, liability, or damage caused directly, indirectly or incidentally to errors in or omissions from the above/ attached materials. The Publishers and Bernama also disclaim and exclude all liabilities in respect of anything done or omitted to be done in reliance upon the whole or any part of the above/attached materials. The access to, and the use of, Asean LIP and contents herein are subject to the Terms of Use.

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