PETALING JAYA: Two new schemes involving the Employees Provident Fund (EPF) announced under Budget 2025 are still having their mechanisms worked out, says the retirement fund.
These are the mandatory foreign workers’ contribution and the intergenerational transfer of wealth.
EPF stated that the proposals tabled were to boost the retirement well-being of all to ensure no one is left behind in social security as well as to prepare the elderly with a better future.
In the statement issued yesterday, EPF chief executive officer Ahmad Zulqarnain Onn said the intergenerational transfer mechanism to allow direct transfers into EPF accounts is still being studied.
“Budget 2025 announced that the EPF will review its scheme to allow for intergenerational transfer of savings by members to their family members. This will allow members additional flexibility in planning for their retirement and the financial well-being of their families,” said Ahmad Zulqarnain.
EPF also stated that the announcement to expand mandatory coverage to non-Malaysian workers fully aligns with the fund’s broader effort to ensure that all workers, regardless of nationality, have access to social protection.
Currently, non-Malaysian workers can voluntarily opt to contribute to the EPF. The new policy is expected to benefit over two million foreign workers in Malaysia.
“The EPF will provide further updates on the details of contribution rates, key target groups, and policy implementation mechanisms in due course,” said Ahmad Zulqarnain.
The CEO also applauded the increased incentives for the i-Saraan and i-Suri schemes.
I-Saraan is a voluntary contribution initiative for the self- employed, while i-Suri is a voluntary contribution programme for women registered in the National Poverty Data Bank (eKasih).
“EPF welcomes the government’s approval to enhance the i-Saraan programme by increasing the matching incentive from 15% to 20%, subject to a maximum of RM500 a year and a lifetime limit of RM5,000 per individual.
“This enhancement, effective from Jan 1, 2025, will benefit more than 330,000 existing and new i-Saraan participants.
“In the first half of 2024, i-Saraan recorded contributions of RM1.61bil from 330,196 members, an increase of 103% from RM789.3mil, and a 56% rise in the number of members from 211,361 in the same period as 2023.
“In addition, as an appreciation for the contributions of housewives to the development of families and the nation, the government’s matching incentive for the i-Suri programme of 50% of the total annual contribution will be extended for 2025.
“The incentive is subject to a maximum matching limit of RM300 a year and RM3,000 for a lifetime, or until reaching the age of 55, whichever comes earlier,” said Ahmad Zulqarnain.
