Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on August 10, 2018

KUALA LUMPUR: The Employees Provident Fund (EPF) has yesterday signed a Memorandum of Understanding (MoU) with Grab Malaysia to encourage its ride-hailing driver-partners to save for retirement through Caruman Sukarela Insentif Persaraan (i-Saraan), a voluntary retirement savings programme with the retirement fund.

“Our members are provided with a secure savings option, as EPF has a proven track record of sustainable, above-inflation returns which will enhance the value of their savings over the long term,” said EPF chief executive officer Datuk Shahril Ridza Ridzuan in a statement.

Shahril said that by contributing to the scheme, Grab driver-partners can enjoy the same benefits as an EPF member, such as annual dividends on their retirement savings, tax relief, death benefit, and access to the retirement fund’s retirement advisory service at no cost.

“On top of annual dividends and benefits, the government will top up an additional 15% of annual contributions to a maximum of RM250 per year until 2022 for members below age 55,” he added.

i-Saraan, previously known as the 1Malaysia Retirement Savings Scheme, is designed to allow individuals who are self-employed or those who receive no regular monthly income, such as taxi drivers, petty traders, farmers, freelancers, as well as those working in the gig economy, to save for their retirement while enjoying the same benefits as EPF members.

Effective Aug 16, Grab will also be providing a contribution of 5% on the amount contributed by selected driver-partners subject to a maximum of RM80 a year, in addition to the government incentives provided.

“Grab Malaysia is proud to partner with EPF in supporting the government’s initiative to create a more holistic social protection ecosystem, starting with ensuring the retirement wellbeing of our Grab community of driver-partners,” said Sean Goh, Grab Malaysia country head.

“In fact, based on a survey with our driver-partners, 75% of them have expressed interest to save for their retirement specifically through this collaboration. We therefore want to encourage them to take charge and be in the driver’s seat of their future financial security,” Sean added.

Statistics by the Institute of Labour Market Information and Analysis (Ilmia) revealed that out of 22 million of Malaysia’s working population, a total of 7.1 million are actively contributing to EPF and 1.7 million are covered by the public pension scheme.

The remaining 13.2 million comprise of individuals who are self-employed or freelancers and outside the labour force not covered by any formal social protection programme in the country.

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