Now…this is really getting up my nerves: Your KWSP contributions will be AUTOMATICALLY adjusted to the new OPTIONAL 8% rate, regardless of whether you opted for it or not!
Lower EPF Employees’ Contribution Rate Starting January 2009 Wage
Members of the Employees Provident Fund (EPF) will be able to benefit from the reduction of the employees??monthly statutory contribution rate by three per cent, from 11 per cent to 8 per cent, effective from January 2009 wage for a period of two years.
Deputy Prime Minister and Finance Minister YAB Datuk Seri Najib Tun Abdul Razak made the announcement during the winding up speech for the Ministry of Finance on the 2009 Budget on Tuesday. The move will help increase members??disposable income in the context of the current economic outlook. At the same time, the higher disposable income will support domestic consumption and thus help sustain the momentum of economic growth.
The decision to reduce members??statutory contribution rate was taken twice before in 2001 and 2003 as part of an economic stimulus package.
For ease of members and to better facilitate implementation of the measure, the reduction of the employees??contribution from 11 per cent to 8 per cent will be made automatically, effective from January 2009 wage. This arrangement will be implemented until December 2010 wage.
However if members wish to maintain the contribution rate at 11 per cent may choose to do so by filling up Form KWSP 17A (AHL). Once completed, the forms can be submitted to the members??respective employers for submission to the EPF.
In the meantime, the EPF will be issuing a new monthly contributions schedule accordingly. Members and employers may obtain the new schedule and Form KWSP 17A (AHL) from all EPF branches or download them from our website, myEPF, at www.kwsp.gov.my from 1 December 2008 onwards.
Didn’t the Finance Minister said that the decision to reduce the rate from 11% to 8% is optional? Then, what gave the KWSP authorities to act on behalf of the contributors to slash their contribution rates? This made it sounds like a “mandatory” move. Yes, it might seem to have ease members who are keen to slash their contribution trips to KWSP, but what about those who DOESN’T want to slash their rates? What about those who doesn’t want more “disposable” income?
Matters get worse for those who are not well-informed of such new policies that they are not even aware of their contribution being slashed automatically by 3%, and hence causing even more havoc for KWSP’s administrative department.
He also said the union is unsure as to whether EPF had briefed its board of directors and the Malaysian Trades Union Congress (MTUC).
??ntil now, unofficial sources have said there has been no such briefing by EPF. As such, Maseu disagrees with the automatic reduction. To the contrary, it is those workers who agree to reduce their contributions who should be made to apply for that end,??he added.
The Sarawak Bank Employees Union had earlier objected to the move to reduce employees??EPF contributions and described it as a ??lueless knee-jerk reaction??
The union?? chief executive officer Andrew Lo said the move ??ould further jeopardise the already meagre retirement savings of Malaysian private sector workers??
He said instead of seeking to raise wages to increase disposable income and increase domestic demand, the government has chosen to sacrifice those savings.
??e strongly urge workers not to volunteer for this reduction because it will then give employers an excuse not to increase wages,??added Lo, who is also Sarawak MTUC secretary, in a letter to Malaysiakini.
Or is there something KWSP not telling the labour force with this recent move? Or is this a red herring to the recent RM 5 bil + RM 5 bil campaign?
Anyway, with all mindless and inconsiderate measures by KWSP authorities in handling Other People’s Money, you can still opt out from this “3% rate slash” by filling up this form: Form KWSP 17A
You might want to read these too...
- No related posts.