EPF SUPPORTS BUDGET 2022 MEASURES TO SPUR THE ECONOMY AND BUILD RESILIENCE, KEY TO REBUILDING RETIREMENT SAVINGS
KUALA LUMPUR, 29 October 2021: The Employees Provident Fund (EPF) supports the Government’s measures tabled in Budget 2022, which are conducive towards fostering economic recovery, improving livelihoods, as well as spurring employment, which can pave the way for Malaysians to rebuild their retirement fund.
During the tabling of the Budget 2022 themed “Keluarga Malaysia, Makmur Sejahtera”, the Minister of Finance Tengku Datuk Seri Zafrul Tengku Abdul Aziz announced that the Government’s 15 per cent contribution under i-Saraan, subject to a maximum of RM250 per member per year, will be extended to include those from age 55 to 60. i-Saraan is a voluntary contribution programme with incentives for the self-employed and informal sector workers to save for their retirement. To date, there are 356,791 members registered under i-Saraan.
In addition, the Government’s decision to extend the minimum statutory contribution rate for employees at nine (9) per cent for another six months, is a move that acknowledges the current economic challenges faced by members. The extension, which can be opted out if members choose to, will take effect from January 2022 wages (February 2022 contribution) until June 2022 wages (July 2022 contribution), after which the minimum statutory contribution rate for employees returns to 11 per cent.
EPF Chief Executive Officer, Datuk Seri Amir Hamzah Azizan, said “The move to extend the statutory contribution rate at nine per cent until mid-2022 should come as a relief as it helps to increase employee’s take-home salary and ease financial hardship.
“We are also grateful that the Government has agreed to extend the age for i-Saraan members as this can encourage more self-employed and informal sector workers to save for their retirement with the EPF. More so, self-employed and gig workers are also offered tax relief of up to RM4,000 when they contribute to the EPF via voluntary contributions. This is in line with our focus to get this group into the EPF scheme for their future retirement security.”
Meanwhile, the Caruman Sukarela Insentif Suri, or i-Suri, which enables housewives and widows to save with the EPF, will be integrated with the Social Security Organisation (SOCSO) and renamed ‘Kasih Suri Keluarga Malaysia’. The initiative provides the opportunity for housewives and widows registered under the eKasih system, to gain access to social security. eKasih is a national-level integrated database system on poor households to assist in the planning, implementation, and monitoring of poverty eradication programmes.
Datuk Seri Amir Hamzah said that the EPF welcomes the social protection measures announced in Budget 2022 which include insurance, takaful, medical assistance as well as expanding support to children and the elderly. These efforts go some way towards addressing the shortcomings of the country’s social protection system for the vulnerable members of society, to ensure that they have access to at least a minimum standard of living, even during unprecedented times.
“Given that our coverage extends to almost half of the Malaysian population, we will continue to work with the Government and related agencies in achieving social wellbeing for EPF members and Malaysians at large, in a manner that is transparent, inclusive, and in line with the ‘Keluarga Malaysia’ spirit.”
Issued by the EPF Media Desk Corporate Affairs Department 29 October 2021
About the Employees Provident Fund (EPF)
The Employees Provident Fund (“EPF”) is one of the oldest retirement funds in the world. Established in 1951, the EPF is a social-security organisation focused on safeguarding member savings and delivering excellent services. In recent years, in line with its vision of helping members achieve a better future, the EPF has expanded its role to encompass the creation of a comprehensive social well-being ecosystem. Today, the EPF remains steadfast in its commitment to members through consistent efforts to update and improve itself, in order to build the foundation for sustainable, holistic and equitable well-being for all Malaysians