Pheng Yin Huah: Employees should contribute 11% EPF in order to be secured in old age

 

Nanyang Siang Pau, February 25, 2016

Kuala Lumpur, Feb 24 – With the notification date draw nearer, president of the Federation of Chinese Associations Malaysia (Hua Zong) Pheng Yin Huah encouraged the employees to maintain the 11% Employees Provident Fund (EPF) contribution rate for the security in old age.

To submit notification before next month

He said employee who intend to maintain the 11% contribution rate must sign the notification form by end of this month or early March otherwise they will be deemed as accepting the 8% contribution rate (reduce of 3%).

Pheng Yin Huah urged employees to pay attention on the matter to make sure they make wise decision within the stipulated timeframe.

Pheng Yin Huah was speaking to reporters after attending a signing ceremony at Wisma Hua Zong.

In the recalibrated budget for 2016, Prime Minister Datuk Seri Najib had introduced the new measure to enable RM8 billion cash to be pumped into the market in order to strengthen domestic demand and also to reduce the burden of the employees on daily expenditure.

Pheng Yin Huah said EPF would automatically reduce the contribution rate of the employees by 3% (employers contribution remain at 12%), i.e. from 11% to 8%, effective from March to December 2017. Employees who want to maintain the existing contribution rate need to submit a notification form to EPF.

From Feb 2, employees can download the notification form NotisKWSP17A Khas2016 from EPF website http://www.kwsp.gov.my, upon filling the form it should be handed over to employers in order to submit to EPF. They can also notify EPF collectively through employers.

EPF dividend higher

Pheng Yin Huah said employees should maintain contribution rate of 11% if they have the ability to do so lest losing their future money.

“Moreover, EPF has good performance, making profits from investments; its dividends are high in recent years which meet the demand of its contributors.”