EPF down from 11% to 8%
PETALING JAYA: Employees can choose to reduce their EPF contributions to increase their disposable income next year. The Government has allowed employees to reduce their contributions by three percentage points from 2009 to 2011. Presently, the employer’s EPF contribution is 12% while employees contribute 11%.
“With the reduction, the total contribution is still at a reasonable rate of 20%, which is 12% from the employer and 8% from employee,” said Deputy Prime Minister Datuk Seri Najib Tun Razak.
Najib, who is also Finance Minister, said if all contributors chose to reduce their contributions, it would come up to RM4.8bil annually.
“Assuming that only 50% of contributors take up the option, private spending is expected to go up by RM2.4bil,” he said.
“A person earning RM2,000 could gain an extra disposable income of RM60 monthly, while one earning RM6,000 will have an extra RM180 to spend.” [......]
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