KUALA LUMPUR, Oct 7 — Employees Provident Fund (EPF) contributors would be able to make voluntary contributions up to RM100,000 yearly in addition to their statutory savings, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz said during the unveiling of Budget 2023 today.

The new limit is a step up from the existing RM60,000 ceiling.

"Looking at the importance of accumulating one's old-age savings, the voluntary contribution limit will be raised from RM60,000 to RM100,000 yearly," Tengku Zafrul said.

Recently, EPF announced that it recorded its first negative net contribution in 20 years at RM58.2 billion as members withdrew funds from their EPF accounts to cushion the impact of Covid-19 pandemic movement restrictions which began in early 2020.

EPF's chief executive Datuk Seri Amir Hamzah Azizan was quoted as saying in its latest annual report for 2021.

To further encourage voluntary contributions, Tengku Zafrul said that the government aims to expand the scope of tax relief for premiums paid towards life or takaful insurance to also cover voluntary contributions up to RM3,000.

Tengku Zafrul said the existing Voluntary Contribution with Retirement Incentive (i-Saraan) will be extended beyond 2022 into 2023 and further improved as the government's annual contribution of RM250 will be raised to RM300.

Under i-Saraan, members who are self-employed and do not earn a regular income are allowed to make voluntary contributions towards their retirement and at the same time receive additional contributions from the government.

"With an allocation of RM30 million, this initiative is expected to benefit up to 100,000 contributors," he said.