Budget 2024: EPF To Introduce New Flexible Account, Govt To Improve Social Protection Programmes

Alex Cheong Pui Yin

13th October 2023 - 2 min read

The Employees Provident Fund (EPF) will be restructuring members’ accounts in a bid to better empower them when saving for their retirement, said Prime Minister Datuk Seri Anwar Ibrahim during the tabling of Budget 2024 today. Dubbed the EPF Flexible Account, it will be introduced as a new account that members can access at any time.

Details are sparse as of the moment, but the EPF is expected to share more information in the near future as it rolls out the new and restructured account. The EPF had actually already hinted a few days prior at the possibility of restructuring members’ accounts as it is looking to introduce a new savings and withdrawal mechanism. At that time, the provident fund had also said that it is considering the option of aligning the withdrawal age of its members with their minimum retirement age.

Aside from this, Datuk Seri Anwar said that the government is also looking to improve several ongoing social protection programmes to ensure that those who are in need continue to receive appropriate protection. These include several schemes that are currently run by both the EPF and the Social Security Organisation (SOCSO), including i-Saraan, i-Suri, i-Sayang, as well as the Self-Employment Social Security Scheme (SKSPS) and Housewives’ Social Security Scheme (SKSSR).

Specifically, the government will increase its matching contribution limit for i-Saraan from the current RM300 to RM500 per year, capped at RM5,000 for life. Under i-Suri, the matching contribution limit will also be increased from RM200 to RM500 a year, capped at RM3,000 for life. Meanwhile, the i-Sayang scheme will be expanded to allow wives to voluntarily transfer 2% of her EPF contributions to her spouse’s account. Previously, only husbands were allowed to do so.

As for the Self-Employment Social Security Scheme, the government will increase its matching contribution to 90% – as compared to the current 80% – with a total allocation of RM100 million. In the case of gig workers, Datuk Seri Anwar said that he hopes that employers will help to bear the remaining 10% of contribution as a show of support for their gig workers.

Finally, the prime minister said that a total of RM50 million will be allocated so that the Housewives’ Social Security Scheme can be continued. This is expected to benefit 400 thousand housewives who are currently registered under the e-Kasih database.

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Alex Cheong Pui Yin

Previously covered recruitment-related stories and had a short stint as a copywriter for the property industry. She subsequently developed an interest in investment and robo-advisors.

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