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BUSINESS • 22/10/2024 06:52 PM

Budget 2025: EPF Contributions To Be Made Mandatory For Foreign Workers - PM Anwar

KUALA LUMPUR, Oct 18 (Bernama) -- The government plans to make it compulsory for all non-citizen workers to contribute to the Employees Provident Fund (EPF), said Prime Minister Datuk Seri Anwar Ibrahim.

He said the government was committed to providing fair treatment to all workers regardless of nationality, in accordance with international standards.

“This proposal will be implemented in phases,” he said when tabling Budget 2025 in the Dewan Rakyat today.

To encourage more informal workers and those without a fixed income to save for retirement, Anwar, who is also the Finance Minister, announced that the EPF i-Saraan matching incentive has been raised from 15 per cent to 20 per cent, subject to an annual limit of RM500 or a lifetime maximum of RM5,000. 

He said that the i-Suri programme would continue with matching incentives through government contributions and active contributions from participants.

Anwar added that the social protection agenda would continue to be strengthened to ensure more people have adequate retirement savings and insurance coverage against calamities.

He said that the Self-Employment Social Security Scheme would cover up to 70 per cent of employee contributions, with an allocation of RM100 million.

“This is in preparation for establishing mandatory contributions as one of the requirements for renewing vocational licences for self-employed individuals next year. The operating company is urged to cover the remaining contribution as a commitment to protect workers’ welfare,” he said.

The Prime Minister also mentioned that the Tenang Protection Scheme would continue in collaboration with Bank Negara, the insurance industry and takaful providers, benefiting up to two million recipients of the Sumbangan Tunai Rahmah (STR) programme.

“They are eligible to claim a RM30 voucher to help cover part of the cost of purchasing a Perlindungan Tenang product that provides protection against death, accidents, and general risks such as fire and flood,” he said.

As Malaysia moves towards becoming an aged nation, Anwar stated that the EPF was reviewing its schemes to strengthen the intergenerational transfer approach, enabling a portion of an EPF member’s savings to be directly transferred to the EPF accounts of close family members.

“The government plans to extend individual income tax relief on contributions to the Private Retirement Scheme and deferred annuity premium payments until the assessment year 2030,” he said.

-- BERNAMA

 

 

 

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