In his Budget 2023 proposal, Prime Minister Datuk Seri Anwar Ibrahim has announced a one-off contribution of RM500 to EPF members aged between 40 to 54 with less than RM10,000 in their Akaun 1.

This comes as the government aims to assist and encourage Malaysians to rebuild their retirement savings after several rounds of withdrawals during the pandemic. As such, the government will assist with a one-off RM500 contribution into the accounts of members who are between 40 to 54 years old and have less than RM10,000 savings in Akaun 1.

This assistance will benefit a considerably large amount of 2 million EPF members.

In addition, Datuk Seri Anwar Ibrahim also stated of a minor amendment to the current income tax relief that will allow Malaysians to claim tax reliefs for EPF self contribution. In his speech, this amendment specifically covers the tax relief for life insurance/takaful premiums, which will now include EPF self contrbutions.

Currently, for non-public servants, the tax relief is up to RM7,000 broken into two subsets: up to RM3,000 for life insurance/takaful premiums and up to RM4,000 for statutory EPF contributions.

If approved, this will allow Malaysian taxpayers to earn tax reliefs with EPF self contributions, effectively rewarding them for saving for their retirement.

• TAGS:
• Datuk Seri Anwar Ibrahim
• EPF
• EPF Self Contribution
• Income Tax Relief