Dapat dari email. Ada logiknya juga. Apa kata anda?

——————————————

Assume monthly basic salary is RM4000.

- If your monthly EPF contribution is 11% ( RM440 ),taxable income = RM3560, income tax payable = RM77.

- If your monthly EPF contribution is 8% ( RM320 ),taxable income = RM3680, income tax payable = RM109.

Conclusion : If you choose to contribute 8%, you will end up paying more income tax to the government, which will make the government richer. Finance Minister Najib said this measure is meant to boost up the slow-down market, but from this example we see that the money does not go into the market. Instead the money goes direct into the government’s pocket through the greater amount of income tax that we will have to pay. Obviously this measure does not help the market at all. Does this government have the best interest of the people in mind??

——————————————

The new employee’s EPF contribution rate of 8% in place of the regular 11% has drawn flaks and criticisms from many different quarters. Cuepacs, FOMCA, Malaysian Employer’s Federation (MEF) and MTUC (Malaysian Trade Union Congress) have all issued strong statements against Deputy Prime Minister, Datuk Seri Najib Tun Razak’s announcement, indicating their concern on the employees’ pension welfare.

In the argument, the reduction should be given as a voluntary option, and not automatic or mandatory as it is being exercised. In the new implementation, unless members fill up Form KWSP 17A (AHL) to maintain their current contribution of 11%, this new rate will be applied automatically beginning of January 2009. The form can be obtained from any of the EPF branches, or downloaded from EPF website from December onwards.

Cuepacs has some 40,000 members who are under EPF statutory and its President Omar Osman wants all of them to opt out of the move and maintain their contribution at 11%. As a rough calculation made for an average worker found out that the person only has between RM120,000 to RM160,000 upon retirement, a further 3% reduction will potentially be catastrophic for the pensioner.

The decision to reduce the EPF contribution rate was part of the government’stimulus package for the economy and was announced on 4 November by the Deputy Prime Minister. The same move was made on 2001 and 2003, each done for a period of 1 year. With the latest cut, a worker will get a higher disposable income but will shrink his retirement fund by 3%.

The Employee Provident Fund (EPF) has decided to reduce its members’ monthly contribution rate from the usual 11% to 8% of their salary with effect from January 2009. Deputy Prime Minister, Datuk Seri Najib Tun Razak made the announcement and told that the move is done to give a higher disposable income to employees, as well as making room for better financial management. With the new rate, an employee earning RM2,000 per month will be contributing RM160 monthly instead of RM220 to their pension fund.

The implementation will be made automatically, and those members who wish to maintain their contribution at 11% would be required to fill up Form KWSP 17A (AHL) and make the submission via their employers. The form will be made available from the coming December and can be obtained from any EPF office or downloaded from EPF official website.