KUALA LUMPUR (Jan 7): The minimum employers' share of the Employees Provident Fund (EPF) statutory contribution rate for employees aged 60 and above has been reduced to 4% per month.
Meanwhile, the employees' share of contribution for this age group is set at zero, the EPF said in a statement today.
The new minimum statutory rates, proposed in Budget 2019, are effective this month for the contribution month of February, said EPF.
"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.
"The reduction in employers' share to minimum 4% would also encourage employment opportunities for workers above 60 years of age, thus ensuring the population above 60 years old to remain productive and active in the economy," EPF said.
Prior to the revision, employers were liable to contribute 6% per month for employees aged 60 and above, while employees were required to contribute 5.5%.