Cabinet to discuss increasing employers’ EPF contribution, says PM

There have been calls by various unions to boost employees’ retirement savings.

(FMT) – The Cabinet will discuss a proposal to increase the employers’ EPF contribution, says Prime Minister Anwar Ibrahim.

He was responding to demands from various unions for such an increase to boost employees’ retirement funds.

“It has been proposed, but we have not raised it to the Cabinet yet. We need to discuss the matter first. This is a policy decision, so it will have an impact (on the economy),” Anwar said.

Uni Malaysia Labour Centre (Uni-MLC) had reportedly urged the government to increase the employers’ EPF contribution to 20% from the current 13% for those earning RM4,000 and below.

Its president, Shafie BP Mammal, said the increase is necessary to ensure that contributors will have adequate savings in their EPF accounts when they retire.