The Employees Provident Fund (EPF) in Malaysia announces that the minimum Employers’ share of EPF statutory contribution rate for employees above age 60 who are liable to contribute will be reduced to four percent per month.
Also, the employees' share of contribution for this age group has been reduced to zero which was 5.5 percent earlier, the EPF said in a statement.
Proposed in Budget 2019, the new statutory rates will be effective starting January 2019 pay for the contribution month of February, the EPF said.
The move to reduce the statutory contribution rates follows the government's proposal during the tabling of Budget 2019 on Nov 2, 2018, to help increase the take-home pay for employees who continue to work after reaching age 60, according to the EPF.
The move would also encourage employment opportunities for workers above 60 years of age, which will ensure the population above 60 years old remain productive, the EPF said.