Pang Tun Yau
A seasoned tech journalist who now focuses on his other passion, Pang is a firm believer in old-school DCA and optimised spending.
Economic Stimulus Package 2020: Statutory Employee Contribution For EPF Reduced To 7%
Pang Tun Yau
27th February 2020 - 1 min read
As part of the 2020 Economic Stimulus Package announced by interim Prime Minister Tun Dr Mahathir Mohamad, the statutory employee contribution for the Employees Provident Fund (EPF) has been reduced to 7% per month.
Currently, the statutory contribution rate for employees is 11% for EPF members below age 60, and 5.5% for those aged 60 and above. While the contribution for members above 60 years old will remain at 5.5%, members below 60 will effectively have 4% more cash on hand each month.
Designed to encourage domestic consumption, the 4% reduction in employee contribution will see EPF members have a cumulative RM10 billion to use until the rate reverts to 11% in 2021. This 7% contribution rate will be in effect from 1 April 2020 until 31 December 2020.
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Pang Tun Yau
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