New EPF measures to benefit over 2.3 million Malaysians, including two million foreign workers

PETALING JAYA: The new Employees Provident Fund (EPF) measures are expected to benefit over 2.3 million people in Malaysia including two million foreign workers, says the Employees Provident Fund (EPF).

Mechanisms are still being worked out on mandatory foreign workers’ contributions to the fund as well as the intergenerational transfer of wealth as proposed in the Budget 2025.

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 prepare the elderly with a better future.

In a statement on Monday (Oct 21), EPF Chief Executive Officer Ahmad Zulqarnain Onn further applauded the increased incentives for the i-Saraan, i-Suri as well as the mandatory coverage for foreign workers.

“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 per 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 total contributions of RM1.61 bil from 330,196 members, an increase of 103% from RM789.3 mil, and a 56% rise in the number of members from 211,361 in the same period of 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 the year 2025.

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“The incentive is subject to a maximum matching limit of RM300 per year and RM3,000 for a lifetime, or until reaching the age of 55, whichever comes earlier. Launched in 2018, i-Suri encourages housewives registered in the e-Kasih database to save for their future financial security,” said Ahmad Zulqarnain.

He also said that the enhancement to i- Saraan and the continuation of the i-Suri programme ensures that the long- term welfare of all Malaysians is safeguarded.

“By addressing the needs of various segments of society, including youth, working adults, women, and senior citizens, the government is laying the foundation for a more equitable and resilient future. The EPF fully supports this approach as it aligns with its purpose to build a better retirement future for Malaysians,” said Ahmad Zulqarnain.

As for the intergenerational transfer mechanism to allow direct transfers into EPF accounts, Ahmad Zulqarnain stated that the scheme is being studied.

“Budget 2025 also announced that the EPF will review its scheme to allow for inter-generational 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 EPF mandatory coverage to non-Malaysian workers fully aligns with EPF’s broader effort to ensure that all workers, regardless of nationality, have access to social protection.

“This initiative will promote greater fairness in the labour market by ensuring social protection for all workers, regardless of nationality, in line with international standards,” said Ahmad Zulqarnain.

Currently, non-Malaysian workers can voluntarily opt to contribute to the EPF. The new policy is expected to benefit over two million non-Malaysian 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.