KUCHING: The Malaysian Trades Union Congress (MTUC) Sarawak welcomes the federal government’s proposal to increase employers’ contribution to the Employees Provident Fund (EPF).
Its chairman Zaidi Nasar said the 20 per cent increase from 13 per cent is good considering the current state of the economy and the high cost of living.
“We also need to understand that the employees’ salary or payment is still very low, and since the overnight policy rate (OPR) has increased, I believe it is best to discuss this issue,” he said in a statement.
Zaidi cited an example where in 2021, a report from EPF revealed that over two million of its members aged 40 to 54 years had less than RM10,000 in their savings.
“Thus, this explains why the 20 per cent increase should be discussed wholly, as this will benefit everyone in the future,” he added.
Earlier, the federal government said it will discuss a proposal to increase the employers’ EPF contribution.
Prime Minister Datuk Seri Anwar Ibrahim made the announcement following demands from various unions for an increase to boost the employees’ retirement funds.
“It has been proposed, but we have not raised it at the Cabinet level yet and we need to discuss the matter first.
“This is a policy decision, so it will have an impact on the economy,” he said.
