KUALA LUMPUR: The Employees Provident Fund (EPF) has welcomed the government’s move to provide more incentive to the retirement well-being of the informal sector workers who are not covered by a formal or holistic system of social protection.
At the tabling of Budget 2018, Prime Minister Datuk Seri Najib Razak announced that the government’s contribution in 1Malaysia Retirement Scheme (SP1M) will increase to 15 per cent subject to a maximum of RM250 per person per year for a period of five (5) years from 2018 to 2022.
EPF Chief Executive Officer Datuk Shahril Ridza Ridzuan said said the EPF had always been at the forefront of social protection and we are concerned about the well-being of some 13.7 million Malaysians who are not covered by a formal or holistic social protection system.
“Therefore, we are pleased with this announcement, as it highlights the Government’s commitment to the overall well-being of the rakyat and strong support of efforts to increase the take-up rate for SP1M.”
Introduced in 2010, the SP1M is designed to cater to the growing number of Malaysians who do not have a fixed monthly income but desire a retirement fund that can safely grow their savings for the future.
Individuals may voluntarily contribute a minimum of RM50 into their SP1M account up to a maximum of RM60,000 a year.
SP1M account holders are also able to enjoy the same benefits by EPF members such as earning the same dividend rates on their savings and the RM2,500 death benefit.