Thursday, November 27, 2008

EPF @ KWSP Contributions Reduced to 8% - Part 2

Yesterday, I just received the information from our Human Resources Department that we have to wait for the new Form KWSP 17A (AHL) which will only be available from 01 Dec 2008. You can get the form for EPF offices nationwide or it's website, http://www.kwsp.gov.my/. Do not use the current Form KWSP 17A (AHL), it's not valid. If you have submitted the current form, make sure you resubmit the new form from 01 Dec 2008 onwards.
It's has been 3 weeks since the announcement been made. So far no news to hold the 3% reduction for employee EPF contributions. I definitely will prefer to mantain my contribution at 11%. These are the reasons why:
  1. Less taxable income (Higher reduction, means less taxable income -> Pay less income tax)
  2. Bigger @ Fatter retirement fund (3% x 12 months x 2 years = quite a lot of $$$)
  3. More yearly dividend (average 5% dividend x (3% x 12 months x 2 years) = more $$$)

Feel free to share your views :)

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