78% Opted For 3% EPF Reduction

Most employees have opted for a three per cent reduction in their contribution to the Employees Provident Fund (EPF), according to the Malaysian Employers Federation (MEF). However, MEF Executive Director Shamsuddin Bardan revealed that 78 per cent of employees had opted for the new rate of 8 per cent contribution, while the remaining 22 per cent opted to retain the 11 per cent contribution to EPF.   

Previously, Shamsuddin had advised workers not to opt for the three per cent reduction as it could affect their retirement savings.   He said private sector employees contribute about RM18 billion annually to EPF and the reduction would translate into RM540 million in the hands of employees.