A special Employees Provident Fund (EPF) account that permits flexible fund withdrawals will be set up for employees who are eligible for the incentives allocated under the upcoming Malaysia@Work initiative.

The Malaysia@Work initiative is a monthly incentive for employers and employees who meet certain criteria, and it will be valid for two years. Finance Minister Lim Guan Eng explained that the incentives will be credited directly to the employee’s EPF account, where it will be used to offset their statutory contributions. Following that, excess amount of the wage incentive (if any) will then be paid into the special account, which can be withdrawn from any time, at any amount.

This would benefit employees on two ends: their salary will not be deducted (or deducted at a lesser amount) for their employees contribution, and they are also likely to get an excess of withdrawable fund from the incentives, thereby increasing their disposable income.

“This mechanism will allow the participants to save for their retirement and at the same time, the higher disposable income will enable them to support their daily needs,” said Lim.

The Malaysia@Work initiative, which was announced during the tabling of Budget 2020, was allocated a RM6.5 billion stimulus package over the next five years to create up to 350,000 jobs. It is slated to commence in stages beginning the second quarter of 2020.

The initiative consists four primary pillars within the labour force: Graduates@Work, Apprentice@Work, Women@Work, and Locals@Work.

Graduates@Work and Apprentice@Work focuses on the hiring of fresh graduates and technical/vocational education and training (TVET) among youths respectively. Women@Work, on the other hand, is aimed at attracting talent among qualified women. Lastly, Locals@Work looks to reduce low-skilled workers dependency.

The Malaysia@Work initiative is also known as #MalaysiaKerja.

(Source: The Edge Markets)

 

• TAGS:
• Budget 2020
• EPF
• Finance Ministry
• Graduates@Work
• Locals@Work
• Malaysia@Work
• Women@Work