Employees Provident Fund Rate from 11% to 8%

Friday, November 7th, 2008 | In News & The Events |

A short news for the employees provident fund at Malaysia. The Employees provident fund is a compulsory program that provides retirement benefits for employees through management of their saving in an efficient and reliable manner. Normally, employees contribute 11% of their monthly income; whereas employer contributes 12% of the employees’ monthly income.

The deduction of the employees provident fund rate will be adjusted. According to the Sinchew’s newspaper, provident fund board will reduce the fund rate of the Employees provident fund from 11% to 8%, which means employees will get 3% more of monthly salary that balance from their employees provident fund. Provident fund board on Thursday (6th October 2008) has announced, for those employees, who are unwilling to reduce the provident fund rate from 11% to 8%, they must fill out the Kwsp 17A (AHL) form. This form can be downloaded from Kwsp official website (http://www.kwsp.gov.my).

kwsp
It is not compulsory for the employees in order to facilitate the adoption and entry into force of this automatic system, if they wanna to remain the 11% deduction of the month income to their provident fund, they request to fill out the Kwsp 17A (AHL) form.

Employees provident fund to pay the rate of 11% to 8% of the measures automatically take effect from next year to December 2010 only.

Government had in 2001 and twice in 2003 to reduce employee pay rates, in the purpose to boost the economy as one of the matching. The budget of next year injected 7.0 billion Ringgit Malaysia to rescue the market and at the same time to revive the economy, employees may choose voluntary pay reduction of 3% of the fund in order to increase consumer income.

Additionally, the fund to pay employees from the existing rate of 11% to 8% of the measure in 1 January 2009 until 31 December 2010, a period of two years time, Employers pay rate for the employees are remain unchanged at the rate of 12%. Read more on mandarin, please visit the sinchew’s news here.


 



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