"EPF contributions reduced to 8%". This is among the stories on cover page of yesterday's local news. For those of you who has no idea what is EPF, it stands for Employee Provident Fund, a forced saving fund by Malaysian government for old age. All employer must contribute 12% and employee contribute 11%.
At first, I thought employee who wish to have more money to spend, can submit a request to adjust their contribution from the current 11% to 8%. When I checked the news on EPF website today, it's the other way round. With effective from 1 Jan 2008, all EPF member contribution will be reduced to 8% for a period of 2 years. For those who wish to maintain their contribution at the current 11%, they can fill in the Form KWSP 17A (AHL).
I dont agree with this. I still prefer the rate to maintain at 11% for all employees. It's crucially important for working adults to save for their retirement. It's really sad to be old and not able to support oneself financially.
I hope the government will reconsider before the enforcement on Jan next year.