Half of the members of Employees’ Provident Fund (EPF) have chosen the option to decrease their contribution rate from 11% to 8%, Second Finance Minister Johari Abdul Ghani said.
He said the reduction translated into about RM4 billion in the hands of employees circulating to stimulate the economy.
“The remaining 50% of EPF members have opted to retain the 11% subscription. It is their choice.
“The option for the (3%) cut was aimed at increasing public spending,” he told reporters following his working visit to the EPF headquarters here today.
EPF members were given the choice to retain the 11% subscription rate by completing a “Notice to Contribute More Than Statutory Rate” which could be printed from the EPF website at http://www.kwsp.gov.my since Feb 2.
The completed notice needs to be submitted to employers before being sent to the nearest EPF branch.
On preparations for the 2017 Budget, Johari said the Finance Ministry was currently engaging 20 focus groups to get feedback from stakeholders, including the public, non-governmental organisations and industry players.
For example, two deputy finance ministers collected feedback on the cost of living and the capital market last week.
He said the stakeholders provided feedback on how the government could assist them in facing economic challenges.