Increase in employer's EPF contribution to provide financial stability in old age

MUKHRIZ MAT HUSIN
MUKHRIZ MAT HUSIN
04 May 2023 08:51pm
Malaysian Trade Union Congress (MTUC) Secretary General Kamarul Baharin Mansor - SINAR FILE PIC
Malaysian Trade Union Congress (MTUC) Secretary General Kamarul Baharin Mansor - SINAR FILE PIC
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SHAH ALAM - The proposal to increase the employers' contributions to the Employees' Provident Fund (EPF) is not to enable workers to own luxury houses and cars but simply for financial stability in old age and to increase savings during retirement.

Malaysian Trade Union Congress (MTUC) Secretary General Kamarul Baharin Mansor said he hoped the recommendation by Prime Minister Datuk Seri Anwar Ibrahim will be successfully implemented and immediate discussions with stakeholders can be carried out.

"MTUC fully supports the government's decision to review employer contributions for EPF which will increase employee savings rates.

"The review of employer's contribution is timely because the last time an employer's contribution was increased was back in 2012.

"So with the Madani concept, employers need to have courtesy towards their employees," he told Sinar today.

On Monday, Prime Minister Datuk Seri Anwar Ibrahim announced the proposal for EPF contribution rates for employers to be increased to 20 percent compared to the current 13 percent will be discussed by the government.

He said that the proposal had been submitted, but had not been brought forth to the cabinet meeting.

Meanwhile, Kamarul Baharin said MTUC also criticised statements from employers who claimed that a million macro, small and medium enterprise (PMKS) workers were expected to be laid off on the grounds that the employer's contribution to EPF would be increased.

"Threats and warnings from the company are an assumption that is not accompanied by data and only tries to create a bad perception of the government.

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"MTUC advises all parties not to give a bad impression of this proposal because in the end it is the people who will be affected," he said.