PETALING JAYA: The Employees Provident Fund (EPF) has reduced the statutory contribution rate for employees above age 60 who are liable to contribute.
The minimum employers’ share of contribution rate has been set at 4% per month while the employees’ share of contribution rate will be 0%. The previous rates were at 6% and 5.5% respectively.
The new minimum statutory rates will start with the January 2019 salary/wage for contribution month of February 2019.
According to EPF, the reduction of the statutory contribution rates is in line with the government’s proposal during the tabling of Budget 2019 on Nov 2, 2018, to help increase the take-home pay for employees who continue to work after reaching age 60.
“The reduction in employers’ share to minimum 4% would also encourage employment opportunities for workers above 60 years of age, thus ensuring the population above 60 years old to remain productive and active in the economy,” it said in a statement.