The Employees Provident Fund (EPF) has recently launched its Jom Tambah campaign, which seeks to raise public awareness as well as encourage more members to increase their EPF savings via voluntary contributions. This is in hopes of helping them to improve their retirement security, especially in light of recent concerns of members’ insufficient retirement funds.

According to the chief operating officer of the EPF, Sazaliza Zainuddin, data from September 2022 has shown that only 34% of members aged 54 had made a contribution of RM10,000. Meanwhile, approximately 56% contributed below RM50,000.

“We will face an issue in the future if we do not do anything about it, especially the young people. From the data, it can be seen that the people who worked then did not contribute consistently, probably because they stopped working after having a family. So when they reach retirement age, they will face financial issues,” said Sazaliza, adding that this has prompted the EPF to introduce the Jom Tambah campaign.

Sazaliza also shared that the EPF’s voluntary contribution programme – which enables members to voluntarily make contributions to boost their EPF savings, as opposed to statutory contributions – currently allows members to increase their contribution by a minimum of RM10, up to a maximum of RM60,000 per year. Those who wish to do so can use the i-Akaun app and pay via online banking. “We also encourage our members to deduct, for example, RM50 or RM100 per month so that they can consistently contribute to EPF,” he further remarked.

On top of the voluntary contribution programme that is promoted via Jom Tambah, Sazaliza also highlighted that employees who are working in the private sector can actually request to increase their EPF statutory contribution rate to 13%. For context, employees’ statutory contribution rate is set at a minimum of 11% (whereas employers will contribute another 12% or 13%), but they have the option to increase it by informing their employers.

Additionally, Sazaliza said that the EPF is also actively conducting an outreach programme, especially for those who are working in the informal sector, gig economy, and with no fixed income. This includes collaborations with tech giant Grab and on-demand work platform GoGet to encourage their partners or members to contribute via EPF’s self-contribution programme (i-Saraan).

“Up until now, more than 6,000 gig workers from these two platforms have contributed to EPF, while the cumulative number of registered gig workers is over 60,000,” Sazaliza said.

(Sources: EPF, Sinar Daily)

• TAGS:
• Employees Provident Fund (EPF)
• EPF
• EPF Self Contribution
• EPF Voluntary Contribution
• EPF Voluntary Contribution (i-Saraan)
• Sazaliza Zainuddin