STORY TO BE TOLD

Employees’ EPF payment back at 11%

KUALA LUMPUR: The monthly Employees Provident Fund (EPF) contribution for the private sector will revert to 11% effective January, from the current 8%.

“Employers must ensure that the correct amount is deducted from the wages of their employees based on the higher contribution rate and remitted to us,” EPF public relations general manager Nik Affendi Jaafar said in a statement yesterday.

Contributions from employees were reduced from 11% to 8% over a two-year period from January 2009 to December 2010.

Nik Affendi said employees who had previously submitted the KWSP 17A (AHL) special form to maintain the contribution rate at 11% during the two-year period, would not be affected.

EPF: Withdraw savings at 75

KUALA LUMPUR: All contributors to the Employees’ Provident Fund (EPF) should withdraw their savings upon reaching the age of 75.

This is because no contribution would be accepted upon contributors reaching that age and no dividend would be paid on their savings.

EPF Corporate Communications Unit head Nik Affendi Jaafar said contributors’ savings would also be transferred to the Registrar of Unclaimed Monies when they reached the age of 80.

“The EPF is not like a bank. That’s why we don’t encourage contributors to continue saving with the EPF because after the age of 75, we will no longer pay any dividend.

“We will also transfer the money to the Government if it is not claimed when the contributor reaches the age of 80,” he said yesterday.

Nik Affendi was asked to comment on the confusion relating to EPF contributions after members reach 75. — Bernama

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