KUALA LUMPUR, Oct 18 — 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.
The government is 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 announced that the EPF i-Saraan matching incentive has been raised from 15 per cent to 20 per cent, subject to a RM500 annual limit or a lifetime maximum of RM5,000.
The i-Suri programme will continue with matching incentives through government contributions and active contributions from participants.
He said the social protection agenda will continue to be strengthened to ensure more people have adequate retirement savings and insurance coverage against calamities.
The Self-Employment Social Security Scheme will cover up to 70 per cent of employee contributions, with a RM100 million allocation.
“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,” Anwar said.
Meanwhile, the Tenang Protection Scheme will continue in collaboration with Bank Negara, the insurance industry and takaful providers, benefiting up to two million recipients of the Sumbangan Tunai Rahmah programme.
“They are eligible to claim a RM30 voucher to help cover part of the cost of purchasing a Perlindungan Tenang product which provides protection against death, accidents, and general risks including fire and flood,” he said.
As Malaysia moves towards becoming an aged nation, the Prime Minister said the EPF is 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
