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MTUC wants old benefits restored

August 21, 2012

The current payments for incapacitation and death are inadequate, says the trade union.

PETALING JAYA: The Malaysian Trades Union Congress (MTUC) has called on the Employees Provident Fund (EPF) board to immediately restore the old formula for the payment of death and incapacitation benefits to the 6.28 million active members.

Under that formula, members were entitled to a one-off payment of between RM1,000 and RM30,000 from the EPF’s Death and Incapacitation Benefit Fund, said MTUC vice-president A  Balasubramaniam.

Currently, however, they were only paid RM5,000 for incapacitation and a flat rate of RM2,500 for death from the fund, he told Bernama here today.

He pointed out that the payment was inadequate, given that Malaysia did not have any unemployment benefits system or a national insurance scheme for private sector workers.

It also did not have a national health policy to support the unemployed and their families when the main breadwinner suddenly died or was incapacitated, he said.

Balasubramaniam said, according to MTUC’s studies, those members most prone to accidents and sickness were menial and outdoor workers.

He added that since the cost of living had gone up, it was only appropriate that the fund be restored to the old quantum of payment.



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