PETALING JAYA, Oct 18 – The Malaysian Trades Union Congress (MTUC) today called on the government to allow the 2.2 million workers, who opted for the 8 per cent Employees Provident Fund (EPF) deductions, to revert to 11 per cent with immediate effect.
Saying that the economy was recovering, MTUC vice-president A. Balasubrmaniam told Bernama that EPF contributions were old-age savings for private sector workers and it was important that the saving percentage be maintained.
Due to the economic downturn, the government, in November last year, gave employees the option to either maintain the deductions at 11 per cent or reduce it to 8 per cent for a period of two years from Jan 1 this year.
According to the EPF, a total of 2.2 million or 40 per cent of workers opted to reduce it to 8 per cent. Balasubramaniam said MTUC was now concerned for these 2.2 million workers as they were losing in terms of dividends and final payout when they reach retirement age.
He said that although the option was for two years, the government should allow them to revert to the previous deductions now. – Bernama
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