KUALA LUMPUR: The Employees Provident Fund (EPF) today announced that employers will, from now, make a minimum statutory contribution of 4% for employees above 60 years old against the present practice of contributing 6.0% and 6.5%.
The employees will not have to contribute, the pension fund said in a statement.
The new minimum rate will take effect with this month’s salary, it said.
“The move to reduce the statutory contribution rates follows the government’s proposal during the tabling of Budget 2019 to help increase the take-home pay of employees who continue to work after reaching age 60,” it said.
The reduction in the employers’ share would also encourage employment opportunities for workers above 60 and ensure they remained productive and active in the economy.
However, employees currently contributing to the EPF, at the rate of 5% to 5.5%, may opt to continue with their contribution.
For more details, contributors may refer to the EPF website at www.kwsp.gov.my or call the EPF Contact Management Centre at 03-89226000.