RM9.4b in voluntary EPF contributions this year: Deputy finance minister

PARLIAMENT | The Employees Provident Fund (EPF) has recorded RM9.39 billion in voluntary contributions from 872,000 workers this year as of Aug 31.

Deputy Finance Minister Lim Hui Ying said the number of workers represents 10.2 percent of total active contributors under the category.

“For your information, the EPF allows individuals to register and make voluntary contributions from as early as 14 years old.

“This is part of EPF’s efforts to encourage savings and introduce the benefits of multiplying dividends at an earlier age,” said Lim during Question Time in the Dewan Rakyat today.

Aside from voluntary contributions, Lim said a total of 263,000 workers or 3.3 percent of the overall number of active contributors under the category have registered for a deduction rate higher than the mandated 11 percent.

She said the option for higher deductions was one of EPF’s many efforts to encourage more workers to build their retirement funds.

Earlier, Lim said the EPF had since 2013 approved 6,070 applications for withdrawals of RM16.7 million in total savings for purposes of performing the haj before a contributor reached the age of 55.

She said withdrawals by the individuals registered with Tabung Haji could only be done for savings under a contributor’s second account, at the maximum rate of RM3,000 or their total account balance, whichever is lower.

Lim said this in response to Abdul Ghani Ahmad (PN-Jerlun) who asked whether the government will consider allowing withdrawals from a worker’s main retirement fund if they are chosen to perform the haj before the retirement age.

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